1099 from vendor with Roth IRA

[Steve Smith]

Need some professional advise:

Have mineral rights that we're buying thru trust owned by a Roth IRA and do not want the vendor to issue a 1099, which is not required by law. How do we deal with this in regard to the vendor. Can they force it on us or is there a way I can force them NOT to issue one? (The 1099 muddies the waters with the IRA and we don't want that)

[Brian Eastman]

@Steve Smith

It is generally the obligation of an issuer of income to report that income on form 1099-NEC.

If the recipient of the income is your IRA, then there is no confusion. The IRS will not expect to see that income on a tax return.

You can submit form W-9 to the issuer and illustrate the tax-exempt status of the IRA. In that case, they may choose not to issue form 1099.

Please work with your IRA custodian or tax counsel for detailed guidance.