All payments for services rendered made to non-corporate entities including rents and royalties must be reported to the IRS (via form 1099 Misc.) if the payment(s) total $600 or more.
- Royalty Payments: report gross amount (prior to severance and other taxes which may have been withheld or paid).
- Prizes and Awards: report prizes, awards, or any other fixed and determinable payments that arenot for services rendered.
- Non-employee Compensation: report non-employee compensation to include fees, commissions, prizes and awards, or other forms of compensation for services rendered for your trade or business by an individual who is not an employee.
With these types of payments, basic W-4 taxation information is required before a check can be issued. Information needed is your name, home address (not work or school), and social security number.