1099-misc For Contracted Speech Therapist

[Stille]

s About Taxes)/1099-Misc for Contracted Speech Therapist Advertisement Expert: MEdusa - 1/20/2011 Is a home health care company(PLLC), who contracts with a corporation that employs speech & occupational therapists that provide services to our patients, required to send the corporation a Form 1099-Misc(with paid services over $600 shown in box 6)?  If so, why are health care providers not included in the "corporation exemption" for 1099s?

[Justice]

yes. 1099 is required. corporations are not included in the exemption because the IRS said so. It is pretty much that simple.   They can(and frequiently do) what they want and the rules are pretty clear.  

you can google IRS 1099 misc instructions, but it looks like you have read the rules already and just dont like the outcome?  either way. sorry  and good luck. ME.... Box 6. Medical and Health Care Payments

Enter payments of $600 or more made in the course of your trade or business to each physician or other supplier or provider of medical or health care services. Include payments made by medical and health care insurers under health, accident, and sickness insurance programs. If payment is made to a corporation, list the corporation as the recipient rather than the individual providing the services. Payments to persons providing health care services often include charges for injections, drugs, dentures, and similar items. In these cases the entire payment is subject to information reporting. You are not required to report payments to pharmacies for prescription drugs.

The exemption from issuing Form 1099-MISC to a corporation does not apply to payments for medical or health care services provided by corporations, including professional corporations. However, you are not required to report payments made to a tax-exempt hospital or extended care facility or to a hospital or extended care facility owned and operated by the United States(or its possessions), a state, the District of Columbia, or any of their political subdivisions, agencies, or instrumentalities.

Generally, payments made under a flexible spending arrangement(as defined in section 106(c)(2)) or a health reimbursement arrangement which is treated as employer-provided coverage under an accident or health plan for purposes of section 106 are exempt from the reporting requirements of section 6041.