So I have a question regarding who is responsible for issuing 1099 to the Notary. I have a title company that I have worked with throughout the last year and the total amount of checks received from that company is over the $600 required to have a 1099 issued, however this title company says the way I was paid for each file was the individual borrowers were paying me for my services and not the title company. The borrowers would be the one to issue me the 1099 on each individual file and because I’m not paid over $600 for each file I would need to keep my own track and report my own earnings and not the title company sending me a 1099.because he says the Borrowers are responsible for sending a 1099 to me since they are the ones who paid me. Now how can that be when the checks for payment are from the title company???
If you got checks totalling over $600 from the title company they owe you a 1099.
If the orders came through a signing service - the signing service may owe the 1099.
For instance, orders from Stewart Title come via signature closers and I get a 1099 from Signature Closers.
That title company telling you that - I have never heard of such a thing.
@bluesky8549 That title company issued the check, then they’re on the hook for your 1099 - yes you need to keep your own records so you can reconcile at tax time, but the title company who paid you is responsible…you managed to find someone who has no clue. Just because they were reimbursed for the fees by the borrower doesn’t mean they didn’t pay you.
You have two choices, as I see it: (a) file your taxes based on your own records and let it go; or (b) file your taxes based on your own records and report the company to IRS.
Hopefully, Riverpoint will see this question and chime in
I didn’t want to share the name of the Title company, but in the event that anyone else worked with clear edge, Title, please be aware they won’t be sending you a 1099. I even pointed it out from the IRS website and quoted them and sent it to the representative of the title company and he says they are not responsible.
Then you report the income without a 1099.
@bluesky8549 As a business owner, the onus is upon you to perform your own due diligence.
In this instance, reaching out to a skilled & certified tax accountant/Certified Public Accountant [CPA] would best serve your needs . . .
As you can see by the diverse array of responses above, you’re now awash in a multitude of possible steps to take with probable uncertainty of which one is the CORRECT step.
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As I always advise, please due yourself a favor & reach out to the appropriate professional within the business sector you’re seeking the information for insights & guidance.
A general, public forum isn’t the appropriate place to rely on legal nor tax advice.
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They’re not qualified to provide those types of insights nor advice & they certainly WON’T represent you in the event that you become “crosswise” with the regulations & laws.
Wishing you the Best in your Search!
That’s a tax question and you would probably need to ask your tax advisor. Self-employed individuals tax center | Internal Revenue Service
Good to know, I do lots of work with them. Thanks
Cathy, I have to say I agree with @johnsonps306 here. The title company should send you a 1099 and it is why we send them a W9 in the first place. But regardless, I would just report the income without the 1099.
I appreciate all your comments and yes, I do work with a tax professional that works on my taxes and yes, they will be aware of that. I just wanted to let other people know that if they were expecting a 1099 from this title company, don’t think you’re going to get it.
I don’t get a 1099 from 2 major title companies as they say the individual file pays so it’s never more than $600.00
Yes, she would still report the income without the 1099
Yes, I already know that I am reporting the income. My “point” was that the Title Co. was the payer and I was expecting them to report it just as they had in the past.
I have a couple of situations like this. The title company is liable but I just reported the income.