A church rented space from another church last year. Should it request a completed Form W-9 and issue Form 1099-MISC?
Payments from one 501(c)(3) organization to another 501(c)(3) organization are not subject to Form 1099-MISC reporting. The IRS Instructions for Form 1099-MISC state that "payments to a tax-exempt organization" are exempt from reporting a Form 1099-MISC.
The following are typical examples of payments of $600 or more by a church which are subject to reporting a Form 1099-MISC:
- Rent paid to an individual (non-corporation)
- Payments for services rendered by individuals who are not employees (e.g. janitorial service, facilities, snow removal, guest speakers)
- Support sent directly to missionaries