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We're a 501(c)3 non-profit organization. Do I need to send a form 1099 to the firm that I paid commercial insurance payments to? They are classified as a partnership.


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The BIDaWIZ Team's Answer:

The short answer is that yes you should issue a 1099-MISC to the commercial insurance carrier as it is a partnership (Reference IRC Section 6041(a)). Failure to do so may result in an imposition of a $50 penalty by the IRS and you may be required to institute backup withholding per the instructions to the form. This is referenced in IRS Publication 1220.

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