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1099 - Should Sales Tax be included in the 1099

Asked on Feb. 2, 2016

Hi, I have vendors that charged sales tax (example purchased of goods). Should I report the sales tax in the 1099 as a compensation? Thanks for your help,

Answers

Wayne Spivak's headshot
Wayne Spivak President & CFO • January 30, 2016

"State or local sales taxes. If state or local sales taxes are imposed on the service provider and you (as the buyer) pay them to the service provider, report them on Form 1099-MISC as part of the reportable payment. However, if sales taxes are imposed on you (as the buyer) and collected from you by the service provider, do not report the sales taxes on Form 1099-MISC."

-https://www.irs.gov/instructions/i1099msc/ar02.html

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