payer on form 1099misc
My Finance is a contractor with other contractors that work for him. When it comes to paying his guys, can I write them a personal check? I have a seperate personal checking account that I planned on using for this purpose, but wanted to know if I would have to put my name and TIN on the 1099misc or if we could still put his name and TIN?
Hi Bonnie. You should always keep personal accounts separate from business accounts. If your fiance’s name isn’t on that account, do not use it. Is your fiance a sole proprietor or is he owner of a corporation? In order to be a qualified business expense to him, it needs to be paid out of a checking that has his name or company name assigned to it. His information would then go on the 1099 MISC at year end to his subcontractors. If the IRS ever audited, they would trace through bank records and it would open up a big can of worms if you used your personal account.