I’m a staff accountant for an S Corporation. We need to issue 1099 forms to LLCs and contractors. As an S Corporation, do we need to issue a 1099 for goods and supplies?
Please note that the 1099-MISC form is generally issued for payment of services provided. However, if the goods and supplies are part of the services provided by the independent contractors & LLCs, they would be included in the 1099-MISC form. If they are not part of the service provided, you do not need to report payments for equipment, supplies, or other tangible goods, including inventory. This is referenced in the instructions to 1099-MISC here as well as Internal Revenue Code Section 6041(a).
Separately, please note that the fact that your company is an S Corporation, doesn’t impact the requirement as to whether or not you need to issue a 1099. It is the payee (i.e. the contractor/LLC) entity type that is most relevant.
References: IRC Section 6041(a)