July 17, 2009

Form 1099 to Missionaries

Question:

A institution of higher education has a campus missionary partially supported by the school and partially by donations funneled through his mission board that are then advanced to the school for ultimate disbursement to the missionary. Should the school be considering this taxable and providing a Form 1099 to the missionary at year end?

Answer:

As the disbursing agent, the school is responsible to comply with IRS reporting requirements. If the missionary is not in the employ of the school, then Form 1099 should be issued to him as an independent contractor for the full amount disbursed to him. If the missionary is properly classified as an employee, then Form W-2 should be issued.

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