03/12/2025

FROM OUR PARTNERS AT J.R. HELMS & ASSOCIATES, P.C.

1099 Filing Cash Advances

Every year IFDA  receives questions regarding sending 1099 to our cash advance recipients.  There is much confusion & misinformation relate to this therefore, IFDA asked our CPA to offer comment on this matter.  Below is a narrative provided us from Rusty Helms, CPA at J.R. Helms & Associates, P.C.; we hope this provides some clarity

“First, the funeral home has included the dollars in their contract meaning it is part of their gross revenue. It is offset by the expense, so they are not technically paying tax on it (it is netted to a zero taxable amount,  but it is part of their gross revenue.

Second, and here is the more critical item. The funeral home paid the service provider to provide the service at the funeral. The check was written by the funeral home to the vendor for the service. The funeral home then has a 1099 reporting obligation all funds paid by them to that particular service provider exceeding  $599 ($600 or more) during the calendar year.

If the funeral home pays Father Jones 6 times during the year (for various families at $250 each), they have a 1099-NEC filing requirement for the $1,500.00 they paid the minister during the year.”

If you have questions, please contact Andy @ 317-846-2448