Situation: Corporation issues 1099-MISC (nonemployee compensation) to
independent contractor. Contractor is a sole proprietor. Independent
contractor is also a partner in a partnership with spouse as the only
other partner. Spouse contributes materially to earnings paid
to the independent contractor by the Corporation. However, state law
prohibits corporation from paying partnership directly and from
issuing 1099 to the partnership.

(1) Question 1: Can the independent contractor, as a sole proprietor,
issue a 1099-MISC to the partnership to, in effect, transfer income to
the partnership, or alternatively,

(2) Can the contractor as sole proprietor issue a 1099 directly to the
spouse who, under this scenario, would also be a sole proprietor?