I was under the impression that if the proper tax ID information is
provided and verified and all accounting is done properly it is not
necessary for a company to report payments with a 1099 form.

Is it sometimes necessary to issue a 1099 to a corp? 
If so, under what circumstances?

Howdy jbchurchill-ga,

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The website of Hansen, Hunter & Company, P.C. covers the circumstances for
which a 1099 is necessary to be issued to a corporation.
http://www.hhc-cpa.com/tax_news/2004/tax_2004_forms1099.htm

"Form 1099 reporting is required for most payees with the key exception of
corporations.  Departures from this exception include payments required to
be reported in box 6 and payments to attorneys. If the payee is a sole
proprietorship or partnership, a Form 1099 must be filed; however, if the
payee is a corporation a 1099 may be issued, but is not required."

The "box 6" mentioned above is detailed on the above web page as well.

"Medical and health care payments.  Payments made under a flexible spending
arrangement or a health reimbursement arrangement which is treated as
employer-provided coverage under an accident or health plan are excluded."

Please note that a company can choose, by policy, etc. to issue a 1099 even
if they are are not required.

If you need any clarification, please free to ask.


Search strategy:

Google search on: 1099 needed OR required
://www.google.com/search?q=1099+needed+OR+required

Looking Forward, denco-ga - Google Answers Researcher