1099 Reporting obligation when issuing a joint check

6 months ago
State: Florida

We have a subcontractor that is not paying his suppliers, to help the situation we have been issuing joint checks to our subcontractor and the supplier. We are wondering what are obligation is regarding 1099’s , would we be required to issue one to the supplier as well as our subcontractor?

Senior Legal Associate Levelset

That’s an excellent question, but unfortunately I’m afraid that it’s a little outside of our wheelhouse at the Construction Legal Center. While we discuss plenty of construction payment topics, including joint checks, tax compliance can be particularly complicated (especially when dealing with joint checks), and I’m not confident we could provide a clear answer on the topic. However, there are some other resources available online that could be more helpful. Particularly, Avvo.com and JustAnswer are resources where individuals can ask legal questions and receive answers form attorneys from all different practice areas (including tax compliance) and locations.

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