swaitsandClaude Opus 5.5
1304b9c0ad
check / check (push) Canceled after 0s
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
95 lines
2.9 KiB
TOML
95 lines
2.9 KiB
TOML
id = "1099-a-dated-status-applies-by-payment-date"
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title = "A payee's 1099 status applies to each payment as of the payment's date"
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rule = """
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Whether a payee is exempt (a corporation) is judged as of each payment: the
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payer may treat a payee as a corporation when the condition is met before
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the payment is made. An LLC that elects to be taxed as a corporation keeps
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its EIN and becomes a corporation on the election's effective date (the
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date its Form 8832 specifies). Payments before that date count toward its
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1099-NEC; payments from it on are payments to a corporation, for which no
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return is required. (A payee that incorporates is a new legal person: a new
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payee, with its own W-9.)
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"""
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status = "AUTHORITY"
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sources = [
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"Treas. Reg. §1.6041-3(p)(1) (docs/spec/sources/irs-1099-payment-method.md)",
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"Treas. Reg. §1.6049-4(c)(1)(ii)(A) (\"before a payment is made\")",
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"Treas. Reg. §301.7701-2(b)(2), §301.7701-3(c)(1)(iii)",
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"DECISION D-40 (wanderbooks owner, 2026-10-20): dated statuses",
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]
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tags = ["1099", "dated-status", "corporation", "election"]
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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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[[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 = "6000"
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name = "Contract Labor"
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type = "expense"
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[[setup.payees]]
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name = "Harbor Design LLC"
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form = "1099-NEC"
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[[setup.status_changes]]
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payee = "Harbor Design LLC"
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effective = "2026-07-01"
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decision = "not_reportable"
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reason_kind = "corporation"
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reason = "elected to be taxed as a corporation (Form 8832), effective July 1"
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[[events]]
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date = "2026-03-01"
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description = "Design work"
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payee = "Harbor Design LLC"
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lines = [
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{ account = "6000", side = "debit", amount = "1500.00" },
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{ account = "1000", side = "credit", amount = "1500.00" },
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]
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[[events]]
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date = "2026-06-30"
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description = "Design work, the day before the election"
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payee = "Harbor Design LLC"
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lines = [
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{ account = "6000", side = "debit", amount = "1000.00" },
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{ account = "1000", side = "credit", amount = "1000.00" },
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]
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[[events]]
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date = "2026-07-01"
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description = "Design work, the election's day"
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payee = "Harbor Design LLC"
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lines = [
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{ account = "6000", side = "debit", amount = "800.00" },
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{ account = "1000", side = "credit", amount = "800.00" },
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]
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[[events]]
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date = "2026-09-15"
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description = "Design work"
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payee = "Harbor Design LLC"
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lines = [
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{ account = "6000", side = "debit", amount = "1200.00" },
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{ account = "1000", side = "credit", amount = "1200.00" },
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]
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# By hand: before July 1, 1,500.00 + 1,000.00 = 2,500.00 counts (at least
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# 2,000.00: reportable); from July 1 on, 800.00 + 1,200.00 = 2,000.00 paid
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# to a corporation, not reportable.
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[[expect]]
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query = "vendor_1099"
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payee = "Harbor Design LLC"
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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 = "0.00", undetermined = "0.00", not_reportable = "2000.00" }
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