Is a 501(c)(7) social club required to issue a 1099 to every vendor for an expenditure over $600? For instance, if we pay a band $1,000 for one of our dinner-dances or an event hall $800 for rental of their facility, does that mean we have to issue a 1099 to them?
The instructions for the 1099-MISC say:
File this form (1099-MISC) for each person to whom you have paid during the year at least $600 in:
services performed by someone who is not your employee;
prizes and awards;
other income payments;
medical and health care payments;
crop insurance proceeds;
cash payments for fish you purchase from anyone engaged in the trade or business of catching fish;
generally, the cash paid from a notional principal contract to an individual, partnership, or estate;
payments to an attorney; or
any fishing boat proceeds
I highlighted the issues that apply to you (rents and payments for services).
You do not have to give a 1099-MISC to corporations, so ask the band and the event hall if they are corporations. My guess is that the band is not a corporation, but the event hall is a corporation and therefore you don’t give them a 1099-MISC.
You should also have collected a IRS Form W-9 Request for Taxpayer Identification Number from the band and any person you pay for their services. On the Form W-9 they indicate if their business is a corporation or not.
I hope that helps,
Carol Topp, CPA