expenses and 1099s
How Do You treat Reimbursed Expenses on 1099s?
Any business expenses that you reimburse to an individual or company (corporations are exempt), must have supporting documentation (i.e. receipts, expense report, etc.). If proper documentation is not provided, the reimbursed amount will be included in the vendor’s year end 1099. It’s important to provide your bookkeeper with copies of the documentation or at the very least let them know that documentation has been provided to you for your files.