- - - Rejoice in the Lord always ... again I say Rejoice !!! - - -

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                                TO:  Interested Ministries                                                                                             FROM: Jim Bramer, Retired Auditor-CPA     
                                                                                                                                                                            FILE:  0048-01/all

                                 RE:  Form 1099 - Who must file                                                                                 Originated:  January 2000                               

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     A number of Form 1099 questions surface at this time of year; let me share the following:

•     The principle behind why Ministries (and other entities) need to do 1099s is that human beings (that are probably tax payers) receive taxable income from a Ministry and it is NOT reported via forms W-2.
•     The first criteria is that checks are made payable to a specific human being. 
•     Generally checks payable to non human beings, or to a business and/or a corporation, are not 1099 reportable. 
•     The 1099 reporting emphasis is for "Services Rendered" to your Ministry by human beings.
•     Not for checks payable to human beings primarily for the purchase of material or products as needed and consumed by the Ministry.
•     All money going to human beings for reimbursement of Ministry expenses should be supported by Ministry expense documentation.

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                   The bulk of this Publication originated in January 2000 and was      UPTD: May 03, 2008

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       (1) An Online Document, or WRIT (Writing), may be applicable to all Ministries, or it may be designed for just groups like: Evangelical Church, School, Missionary Agency or Organization, Christian Camp / Conference, or other named group.
        (2) WRIT formats include the perspective of   Jim@bcidot.org  via IOMs (Inter-Office Memos) to the Ministry Finance Team (MFTeam); THRDs, a hypothetical Online conversation with members of the MFTeam; GLEANINGS, or Scripture within context of the MFTeam; FWIW; A periodic editorial (For What it is Worth); TRUISM, or believed Ministry Finance principles; and FAQ, response to Frequently Asked Questions.

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