Do third-party DMVs receive a 1099?

by Deborah Zakrzwski, CPA | Oct 29, 2018

Do third-party DMVs get sent a 1099? The third-party DMV in question collected $120 in convenience fees. The rest of the invoice, about $4,000, consisted of government fees for vehicle registration that it collects and sends to the DMV.

If the third party is an individual (sole proprietorship/Schedule C business), then yes, I would send a 1099. If it is an incorporated entity, there is no need to send the 1099.  

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Answered by: Deborah Zakrzwski, CPA, is an associate professor of accounting with the University of Pittsburgh-Johnstown.

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