Why is the MCC code required for exempt corporations?
As previously mentioned, we use many different factors to improve our 1099 filing. The MCC code is only one aspect used to ensure accurate reporting. There are codes on the list that the IRS lists as non-reportable and this is not the only factor in our reporting process. Not all aspects of 1099 reporting can be collected by just one source of information; so, rather than try to differentiate between the different company profiles at receipt of the form, we require the MCC codes for all vendors.
Related Questions
- My organization does not have federal exemption (or is exempt under a different Internal Revenue Code section). How do I obtain tax-exempt status for California?
- What positions are exempt from the reporting requirements of ยง 8-11-120 of the SC Code of Law?
- Why is the MCC code required for exempt corporations?
