We have a vendor to which we are paying royalties on an Intellectual Property License. They are incorporated. Do we need to send them a 1099?


Generally, royalty payments of $10 or more are reportable, but if the vendor is a corporation, then you do not have to issue a 1099. Be sure you have a W-9 on which they have indicated their status as a corporation. See IRS Instructions for Form 1099-MISC.

Have more questions? Submit a request