Is anyone aware of any exemptions for reporting to the IRS payments made to business owners in the city as incentive for making storefront or other improvements to their property?  Our city made several “grants” in 1999 and are trying to determine if it is a reportable payment for 1099 purposes.  Generally, the owner had to comply with various city requirements and had to submit receipts for all work performed prior to the City making payment.  While it appears to be taxable, there may be some exception I’m unaware of.  As today is the obvious date to get 1099’s out, a quick response would be most appreciated.

 

Jesse Takahashi

Accounting Manager

City of Campbell

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