Hello Everyone,

I have another question to ask of everyone with hopes that I can get 
resolution on a matter pertaining to 1099's issued to Volunteer Firefighters. 
 Here is the situation:  The City of Soledad has a paid full-time Fire Chief 
and a volunteer department.  The volunteers are paid $5 per training session 
and $10 per response.  Some volunteers who have taken of certain 
administrative duties ( on their off time, not required by City) are paid a 
flat stipend each month (Volunteer assistant chief, drivers, engineer etc.)  
At the end of each year we issue each volunteer a 1099 when they receive more 
than $600 from the above.

The volunteers are asking that we issue them W2's instead of 1099's at year 
end.  They say that their tax preparers have told them that they do not want 
to be issued 1099's due to liability issues.  Here are the questions:

1.  What does your City do with regard to year end reporting on volunteers?
2.  If you have gone to issuing W2's are they employees or still considered 
volunteers?
3.  Can the payments to volunteers be considered reimbursements rather than 
payments or stipends? (I will also check with our attorney)

I would appreciate any information on what other cities are doing on this 
matter or any reference to IRS codes which may help me.  I would appreciate 
any response by April 18th so that I may inform our Council on the 19th.

Thank you in advance.

Hector De La Rosa, Finance Officer
[EMAIL PROTECTED]
(831) 678-3963 ext. 122 

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