Whether a PC gets a 1099 depends on what the Professional Corporation does, not on the fact that it is incorporated. Medical and legal P.C.s receive 1099s when you pay them $600 or more in a year. P.C.s in other fields, such as accounting or engineering, are covered by the general corporate exemption and do not receive a 1099 as long as they have certified their corporate status on Form W-9.
The default rule under Treasury regulations exempts corporations from information reporting on payments of $600 or more for services.1GovInfo. 26 CFR 1.6041-3 – Payments for Which No Return of Information Is Required Because a P.C. is taxed as either a C corporation or an S corporation, that exemption applies to P.C.s by default. Two carve-outs undo the default for the two fields where P.C.s cluster most heavily.
Medical and Healthcare P.C.s
Payments of $600 or more for medical or healthcare services must be reported even when the provider is a corporation. The IRS instructions state that the corporate exemption “does not apply to payments for medical or health care services provided by corporations, including professional corporations.”2Internal Revenue Service. Instructions for Forms 1099-MISC and 1099-NEC (04/2025) The form to use is 1099-MISC, and the amount goes in Box 6.3Internal Revenue Service. Am I Required to File a Form 1099 or Other Information Return Putting medical payments on a 1099-NEC is a common mistake.
The rule reaches a wide range of providers: physicians, dentists, therapists, and other suppliers of healthcare services. When a payment to a healthcare provider includes charges for injections, drugs, dentures, or similar items, the whole amount is reportable. Pharmacies filling prescriptions are the notable exclusion.2Internal Revenue Service. Instructions for Forms 1099-MISC and 1099-NEC (04/2025)
If your business pays a medical P.C. for employee physicals, drug screenings, or occupational health services, file a 1099-MISC. Insurers making payments under accident and sickness insurance programs face the same obligation.
Law Firms Organized as P.C.s
Attorney fees of $600 or more in a year go on Form 1099-NEC, Box 1, no matter how the firm is organized. The IRS defines “attorney” broadly to include law firms and any other provider of legal services.4Internal Revenue Service. Instructions for Forms 1099-MISC and 1099-NEC (Rev. April 2025) A law-firm P.C. gets a 1099 for its fees the same way an unincorporated firm does.
Legal payments carry a second reporting layer. Gross proceeds paid to an attorney in connection with legal services, but not for the attorney’s own services (settlement funds routed through a lawyer’s trust account, for example), are reportable on Form 1099-MISC, Box 10, when they reach $600 or more. This applies even when the firm is a corporation.4Internal Revenue Service. Instructions for Forms 1099-MISC and 1099-NEC (Rev. April 2025) A single matter can therefore produce two 1099s to the same firm: one for fees on the NEC and one for proceeds on the MISC.
Other Professional Corporations
If the P.C. provides something other than medical or legal services, the general corporate exemption still holds. An accounting firm, engineering firm, or architectural practice organized as a P.C. and properly certified as a corporation on Form W-9 does not receive a 1099. The service, not the corporate label, drives the answer.
The two-part test is short. First, what does the P.C. do? If it is medical or legal, a 1099 is required regardless of corporate status. If it is anything else, check whether the entity certified itself as a corporation on its W-9. If it did, no 1099 is needed.
Collect a W-9 Before You Pay
Get a completed Form W-9 from the P.C. before making a payment. The W-9 captures the legal name, Taxpayer Identification Number (usually an EIN), and federal tax classification. A P.C. should check either the C Corporation or S Corporation box, since P.C.s are treated as one of those for federal tax purposes.5Internal Revenue Service. Instructions for the Requester of Form W-9 (03/2024)
A properly completed W-9 protects you. When the box is checked for corporation and the services are not medical or legal, you have documentation supporting the decision not to issue a 1099. Keep W-9s on file. The IRS may ask for them during an examination.
If the P.C. fails to return a W-9 or provides an incorrect TIN, you must begin backup withholding at 24% on all payments until valid information arrives.6Internal Revenue Service. Backup Withholding That withholding is not optional. If the IRS later determines the payee never provided valid identification, skipping it puts the liability on you.
Deadlines and Filing
Form 1099-NEC is due to both the IRS and the recipient by January 31, paper or electronic.2Internal Revenue Service. Instructions for Forms 1099-MISC and 1099-NEC (04/2025) There is no automatic extension for electronic 1099-NEC filing.
Form 1099-MISC runs on a split schedule. Paper filings to the IRS are due by February 28; electronic filings by March 31. Recipient copies are due January 31.7Internal Revenue Service. General Instructions for Certain Information Returns (For Use in Preparing 2026 Returns) If a due date falls on a weekend or legal holiday, the deadline shifts to the next business day.
Any filer producing 10 or more information returns of any type during the year must file electronically.8Internal Revenue Service. E-File Information Returns The count combines all 1099-series forms, W-2s, and other information returns. A business issuing five 1099-NECs and six W-2s has crossed the line and must e-file everything. The IRS Information Returns Intake System (IRIS) Taxpayer Portal handles 1099-series returns online at no cost; access requires an IRIS Transmitter Control Code.9Internal Revenue Service. File Form 1099 Series Information Returns for Free Online
Penalties for Skipping a Required 1099
The IRS charges per-form penalties for failing to file correct information returns on time. For returns due in 2026:10Internal Revenue Service. Information Return Penalties
- Within 30 days of the due date: $60 per form
- More than 30 days late but by August 1: $130 per form
- After August 1 or not filed at all: $340 per form
- Intentional disregard: $680 per form with no maximum cap
The same schedule applies to failing to furnish the recipient copy, so one missed 1099 can generate two penalties. Small businesses face lower annual caps than larger filers, but the per-form amounts are identical. Intentional disregard, which the IRS applies when it determines you knowingly ignored the requirement, has no ceiling.
This is the practical reason to collect W-9s at the start of any engagement. A W-9 showing a corporate classification for a non-medical, non-legal P.C. gives you a defensible basis for not issuing a 1099. Without it, you are exposed if the IRS asks why no form was filed.
Quick Reference
- Medical or healthcare P.C.: report $600 or more on Form 1099-MISC, Box 6. The corporate exemption does not apply.
- Law firm P.C.: report attorney fees of $600 or more on Form 1099-NEC, Box 1. Report gross proceeds of $600 or more on Form 1099-MISC, Box 10. The corporate exemption does not apply.
- Accounting, engineering, or other P.C.: if corporate status is certified on Form W-9, the corporate exemption applies and no 1099 is required.