Are florists 1099-reportable? What about restaurants?


Reporting transactions under the 1099 Information return is generally required when you make payments to persons who have received payments of over $600 and are not incorporated as a business. They should provide you with a certified taxpayer ID on form W-9 or on a substitute form acceptable under the IRS reporting guidelines. If the florist is not an incorporated business with a valid taxpayer ID, then you would report the payments if they exceed $600 during a calendar year. Even for an individual (such as an independent contractor) make sure that you have the certified taxpayer ID (which is their social security number) on form W-9 on file to validate it. These same principles apply to a restaurant. If you do not get a valid taxpayer ID from the vendor so that you can identify that it is, in fact, an incorporated business, then you need to use the rule of presumption and report payments over $600 on a form 1099.

Have more questions? Submit a request