swaitsandClaude Opus 5.5
01c920c4a7
Split kernel::entry_flows into entry_movements and flows_of so the reversal-mirror proof fits CI; prove runs the fast harnesses, prove-slow the 8 slow ones (own job in scheduled CI), prove-all both. Laws in verification.md renumbered 1-31 with a table of all 55 harnesses. MCP docs checked against the 115 tools (about 60 fixes) with a test that every tool is documented; rules.md cross-references fixed; bookspec statuses and loader tightened; viewer notes wrap and accounts sort by code; STATUS.md says P3 is built, cutover pending. Co-Authored-By: Claude Opus 5.5 <noreply@anthropic.com> Claude-Session: https://claude.ai/code/session_01T3gXMVt7XJPi6ens1or9Dj
101 lines
3.3 KiB
TOML
101 lines
3.3 KiB
TOML
id = "1099-a-members-check-through-financing-counts"
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title = "A member's own check for the company counts toward the payee's 1099; their card doesn't; unknown stays unknown"
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rule = """
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The payer is the person who makes the payment in the course of its trade or
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business. A person paying on another's behalf is the payer only if it
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performs management or oversight functions or has a significant economic
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interest; writing checks at another's direction is neither. A member who
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pays a company bill from their own funds at the company's direction, the
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company bearing the cost through its liability to the member, leaves the
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company the payer: the member's check counts toward the payee's 1099. The
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member's personal card is a payment card: excluded (Form 1099-K). A
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member's payment whose method isn't recorded is undetermined, never
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guessed; the payee is reportable only if what certainly counts reaches the
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threshold.
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"""
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status = "CHOICE"
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sources = [
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"Treas. Reg. §1.6041-1(a)(1)(i), (e)(1) (docs/spec/sources/irs-1099-payment-method.md)",
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"Treas. Reg. §1.6041-1(a)(1)(iv)",
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"26 U.S.C. §6041(a), as amended by Pub. L. 119-21 §70433 (docs/spec/sources/irs-1099-thresholds.md)",
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"DECISION (owner, plan/served.md P3 defect 12; D-40, 2026-10-20): a payment through financing with no payment method recorded is undetermined (wanderbooks rules.md B-19)",
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]
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tags = ["1099", "financing", "member-paid", "instruments"]
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[setup]
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currency = "USD"
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fiscal_year_start = "01-01"
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basis = "cash"
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rounding = "half-away-from-zero"
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cash_accounts = ["1000"]
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financing_accounts = ["2100"]
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[[setup.accounts]]
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code = "1000"
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name = "Bank"
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type = "asset"
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[[setup.accounts]]
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code = "2100"
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name = "Due to Members"
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type = "liability"
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[[setup.accounts]]
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code = "6000"
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name = "Contract Labor"
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type = "expense"
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[[setup.instruments]]
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label = "Riley's checks"
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kind = "member_cash_or_check"
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account = "2100"
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[[setup.instruments]]
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label = "Riley's Visa"
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kind = "member_card"
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account = "2100"
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[[setup.payees]]
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name = "Dana Studio"
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form = "1099-NEC"
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[[events]]
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date = "2026-05-01"
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description = "Logo, paid by a member's personal check"
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payee = "Dana Studio"
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instrument = "Riley's checks"
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lines = [
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{ account = "6000", side = "debit", amount = "2500.00" },
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{ account = "2100", side = "credit", amount = "2500.00" },
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]
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[[events]]
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date = "2026-06-01"
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description = "Icons, charged to a member's personal card"
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payee = "Dana Studio"
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instrument = "Riley's Visa"
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lines = [
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{ account = "6000", side = "debit", amount = "800.00" },
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{ account = "2100", side = "credit", amount = "800.00" },
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]
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[[events]]
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date = "2026-07-01"
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description = "Revisions, paid by a member (how not recorded)"
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payee = "Dana Studio"
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lines = [
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{ account = "6000", side = "debit", amount = "300.00" },
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{ account = "2100", side = "credit", amount = "300.00" },
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]
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# By hand: counts 2,500.00 (the member's check); excluded 800.00 (their
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# card); undetermined 300.00. What certainly counts, 2,500.00, is at least
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# 2,000.00 however the 300.00 turns out: reportable, on 2,500.00 (or
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# 2,800.00 once the 300.00 is known to be a check).
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[[expect]]
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query = "vendor_1099"
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payee = "Dana Studio"
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from = "2026-01-01"
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to = "2026-12-31"
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values = { status = "reportable", threshold = "2000.00", paid = "2500.00", excluded_card = "800.00", undetermined = "300.00", not_reportable = "0.00" }
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