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wanderbooks/bookspec/examples/1099-a-dated-status-applies-by-payment-date.toml
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swaitsandClaude Opus 5.5 1304b9c0ad
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P3: dated 1099 decisions, payment methods and the card exception (defects 23, 12, 18, D-40)
A vendor's 1099 decision is its own dated fact (files NEC or MISC, not
reportable with its reason, or undetermined), applied by each payment's
date. Payment methods are recorded; card and network payments are left
out and listed; a member's check through financing counts; a bank payment
with no method counts (D-40); $2,000 for payments after 2025. One
worksheet for the tool, the viewer and the CPA package.

Co-Authored-By: Claude Opus 5.5 <noreply@anthropic.com>
Claude-Session: https://claude.ai/code/session_01T3gXMVt7XJPi6ens1or9Dj
2026-10-21 12:12:26 -06:00

95 lines
2.9 KiB
TOML

id = "1099-a-dated-status-applies-by-payment-date"
title = "A payee's 1099 status applies to each payment as of the payment's date"
rule = """
Whether a payee is exempt (a corporation) is judged as of each payment: the
payer may treat a payee as a corporation when the condition is met before
the payment is made. An LLC that elects to be taxed as a corporation keeps
its EIN and becomes a corporation on the election's effective date (the
date its Form 8832 specifies). Payments before that date count toward its
1099-NEC; payments from it on are payments to a corporation, for which no
return is required. (A payee that incorporates is a new legal person: a new
payee, with its own W-9.)
"""
status = "AUTHORITY"
sources = [
"Treas. Reg. §1.6041-3(p)(1) (docs/spec/sources/irs-1099-payment-method.md)",
"Treas. Reg. §1.6049-4(c)(1)(ii)(A) (\"before a payment is made\")",
"Treas. Reg. §301.7701-2(b)(2), §301.7701-3(c)(1)(iii)",
"DECISION D-40 (wanderbooks owner, 2026-10-20): dated statuses",
]
tags = ["1099", "dated-status", "corporation", "election"]
[setup]
currency = "USD"
fiscal_year_start = "01-01"
basis = "cash"
rounding = "half-away-from-zero"
cash_accounts = ["1000"]
[[setup.accounts]]
code = "1000"
name = "Bank"
type = "asset"
[[setup.accounts]]
code = "6000"
name = "Contract Labor"
type = "expense"
[[setup.payees]]
name = "Harbor Design LLC"
form = "1099-NEC"
[[setup.status_changes]]
payee = "Harbor Design LLC"
effective = "2026-07-01"
decision = "not_reportable"
reason_kind = "corporation"
reason = "elected to be taxed as a corporation (Form 8832), effective July 1"
[[events]]
date = "2026-03-01"
description = "Design work"
payee = "Harbor Design LLC"
lines = [
{ account = "6000", side = "debit", amount = "1500.00" },
{ account = "1000", side = "credit", amount = "1500.00" },
]
[[events]]
date = "2026-06-30"
description = "Design work, the day before the election"
payee = "Harbor Design LLC"
lines = [
{ account = "6000", side = "debit", amount = "1000.00" },
{ account = "1000", side = "credit", amount = "1000.00" },
]
[[events]]
date = "2026-07-01"
description = "Design work, the election's day"
payee = "Harbor Design LLC"
lines = [
{ account = "6000", side = "debit", amount = "800.00" },
{ account = "1000", side = "credit", amount = "800.00" },
]
[[events]]
date = "2026-09-15"
description = "Design work"
payee = "Harbor Design LLC"
lines = [
{ account = "6000", side = "debit", amount = "1200.00" },
{ account = "1000", side = "credit", amount = "1200.00" },
]
# By hand: before July 1, 1,500.00 + 1,000.00 = 2,500.00 counts (at least
# 2,000.00: reportable); from July 1 on, 800.00 + 1,200.00 = 2,000.00 paid
# to a corporation, not reportable.
[[expect]]
query = "vendor_1099"
payee = "Harbor Design LLC"
from = "2026-01-01"
to = "2026-12-31"
values = { status = "reportable", threshold = "2000.00", paid = "2500.00", excluded_card = "0.00", undetermined = "0.00", not_reportable = "2000.00" }