I have a couple side gigs, and every January I get a little annoyed because I need to send out 1099-MISC forms for various payments to contractors and the like.
According to IRS rules you must send 1099-MISC if you made payments over $600 to individuals and LLCs not taxed as S-Corp or C-Corp.
I'm curious, why does the IRS:
- require 1099-MISC for LLC taxed as an individual or partnership, and
- not require 1099-MISC for LLC taxed as C-Corp or S-Corp?
It doesn't seem to make sense especially since there are a lot of single person LLC S-Corps out there.