1099 Corporate Name Field in A/P Contact Info

[mikenerney]

Working on 1099's and wondering if the Corporate Name field in Accounts Payable Contact Info screen is the place to put info from line 2 Business Name field from the vendor's W9 form. Want to be sure the fields fill in correctly on the 1099. For example:
Sole Proprietor business name is Fred's Auto Repair and the proprietor is Fred Smith
W9 line 1 shows Fred Smith
W9 line 2 shows Fred's Auto Repair
In A/P we put Fred's Auto Repair in as the Vendor Name/DBA
If we put Fred Smith in on the Corporate Name field, where will that info print? on the 1099? on the checks?

[NeilZ]

Working on 1099's and wondering if the Corporate Name field in Accounts Payable Contact Info screen is the place to put info from line 2 Business Name field from the vendor's W9 form. Want to be sure the fields fill in correctly on the 1099. For example:
Sole Proprietor business name is Fred's Auto Repair and the proprietor is Fred Smith
W9 line 1 shows Fred Smith
W9 line 2 shows Fred's Auto Repair
In A/P we put Fred's Auto Repair in as the Vendor Name/DBA
If we put Fred Smith in on the Corporate Name field, where will that info print? on the 1099? on the checks?

Your answer can be found in the help for the Vendor Maintenance screen:

The following information is displayed on the Contact Information tab:

·Contact Name. The primary contact person at the vendor's company.

·Sole Proprietor. If this box is checked, the Recipient Name field on the 1099-MISC form will be formatted differently, according to IRS standards.

·Corporate Name. Enter the corporate name of the vendor, if applicable. This field is also used in properly formatting the 1099-MISC form. If the Sole Proprietor option is checked, this field is disabled.

As far as what prints on the check, the name and address that appears on the Invoice when you select the vendor is used on the check. I just tested and verified that only the Vendor Name is used, not the corporate name.

[mikenerney]

Thanks for checking on what prints on the check. I had read the Vendor Maintenance screen help info. On my screen under the Contact Info tab, the box for sole proprietor is grayed out. Any reason why I cannot check this box? I tried removing the check from the Print 1099 box under account info tab and the sole proprietor box is still gray and cannot be checked. Am I missing something?

[NeilZ]

Thanks for checking on what prints on the check. I had read the Vendor Maintenance screen help info. On my screen under the Contact Info tab, the box for sole proprietor is grayed out. Any reason why I cannot check this box? I tried removing the check from the Print 1099 box under account info tab and the sole proprietor box is still gray and cannot be checked. Am I missing something?

Do you have something in the Corporate Name?

The help says If the Sole Proprietor option is checked, this field is disabled. I suspect the reverse is also true. If you have something in the Corporate Name, the Sole Proprietor option is disabled.

[mikenerney]

Nothing in Corporate Name or Contact Name fields at all. I looked at various other vendors and the sole proprietor box is gray for every vendor. Must be a setting somewhere else driving this.

[mikenerney]

Just tested something else out. If there is something in the Contact Name field, then the sole proprietor box is available. Is this correct? I think the sole proprietor box is supposed to be interacting with the Corporate Name field, not the Contact Name field.

[NeilZ]

Nothing in Corporate Name or Contact Name fields at all. I looked at various other vendors and the sole proprietor box is gray for every vendor. Must be a setting somewhere else driving this.

OK .. try entering a name as the "Contact Name" .. that opens the Sole Proprietor box.

Using your example in your original post, put Fred Smith as the contact.

[mikenerney]

That's what I intend to do but that seems inconsistent with the instructions for the Corporate Name field. When you click the question mark for the instructions about the sold proprietor box, it says:
Contact Name. The primary contact person at the vendor's company.
·Sole Proprietor. If this box is checked, the Recipient Name field on the 1099-MISC form will be formatted differently, according to IRS standards.
·Corporate Name. Enter the corporate name of the vendor, if applicable. This field is also used in properly formatting the 1099-MISC form. If the Sole Proprietor option is checked, this field is disabled.

It just seems like the software has the sole proprietor box interacting with the wrong field. Should be interacting with Corporate Name, not Contact Name.

[NeilZ]

That's what I intend to do but that seems inconsistent with the instructions for the Corporate Name field. When you click the question mark for the instructions about the sold proprietor box, it says:
Contact Name. The primary contact person at the vendor's company.
·Sole Proprietor. If this box is checked, the Recipient Name field on the 1099-MISC form will be formatted differently, according to IRS standards.
·Corporate Name. Enter the corporate name of the vendor, if applicable. This field is also used in properly formatting the 1099-MISC form. If the Sole Proprietor option is checked, this field is disabled.

It just seems like the software has the sole proprietor box interacting with the wrong field. Should be interacting with Corporate Name, not Contact Name.

Depends ... you can have a vendor name like: ABC Plumbing, but the owner is Jack Jones, he's the contact, and Sole Proprietor.

That said, I'll point this out to the techs.

[Zorak]

Let's see if I can clarify the intended functionality with your example:

Sole Proprietor business name is Fred's Auto Repair and the proprietor is Fred Smith

This would be Vendor Name/DBA: Fred's Auto Repair - Contact Person: Fred Smith (no Corporate Name)

Corporate Name would only be used when a corporation, not a person, is the tax paying entity.

Sole proprietor is a person paying the tax that also secondarily has a business name. So, the Sole Proprietor field is only available in combination with the Contact Person whose taxpayer ID (likely their SSN) is printing on your tax form.

There wouldn't ever be a scenario where you would have a Sole Proprietor with a Corporate Name.

I think some of the terminology and instruction on the W9 itself was what drove the additional person/corporation/DBA terminology on the vendor setup in Version 12:

https://www.irs.gov/forms-pubs/about-form-w-9

[mikenerney]

Got it. Thanks!