Discussion:Political Campaign and Form 1099
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Discussion Forum Index --> Tax Questions --> Political Campaign and Form 1099
| 20 January 2007 | |
| I am the volunteer Treasurer of a Congressional candidate campaign organization. We have typically filed Form 1099 to service vendors using the usual rules.
I now wonder if this is necessary. Reg 1.6041-1 b) defines payors that must file Form 1099 as those engaged in a trade or business. The definition is quite broad and lists several IRC sections of not for profit entities that are considered as engaging in a trade or business. I honestly don't know which section a political campaign falls under. But it doesn't seem to be one identified in the inclusion section of the regulations so I am wondering if such organizaitons are consider as conducting a trade or business. Does anyone have any direct experience with this question? | |
| 21 January 2007 | |
| I would continue to file the 1099's to the vendors...the vendors are indeed operating a trade or business and are subject to taxation on that income. Nonprofit organizations are considered to be operating a trade or business when it comes to filing of 1099's per the instructions for that form. | |
| 21 January 2007 | |
| Political committees are governed primarily under Sec. 527. | |
| 21 January 2007 | |
| Thank you Dennis for the Section...now...are they subject to the 1099 reporting requirements? And even if they don't HAVE to...does it not sound reasonable to expect them to so that Uncle Sam gets his fair share of taxes from the self employed vendors? | |
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