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Is it necessary to prepare IRS Form 1099?

April 26, 2017form IRS necessary prepare

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Is it necessary to prepare IRS Form 1099?

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A. No. Since the Nebraska Lawyers Trust Account Foundation is a 501(c)(3) charitable organization, the financial institution does not need to report interest income on IRS form 1099. Section 6049 of the Internal Revenue Code specifically exempts 501(c)(3) organizations from the preparation of Form 1099. In fact, a Form 1099 should not be prepared; to do so may create severe administrative problems dealing with backup withholding.