1099 misc

Why are taxpayers required to prepare and file 1099 misc. for LLCs ( taxed as SMLLC or 1065) & not corporations ?

My thought has always been that a check issued to a corporation has to be deposited into the corporate checking account, so there is a way to trace/track income. A check issued to an LLC can be endorsed and cashed, leaving no trail.

good point. I was not aware that a bank would accept a check made out to an LLC business and then cash it.

Philly, they shouldn't. When I was a teller fifteen years ago, if there was any sign that it was a business, we had to deposit the check and they had to fill out a separate ticket to get cash back. Bank policy was that it had to be done as two transactions.

I have prepared over 1,000 misc this tax season. The banking rules should be changed to not allow a business check to be cashed,

I think that a lot of people make out checks of SMLLC's to the individual. Then the individual just cashes it. As a SMLLC, it is one and the same.

I have only one client that has to file 1099-Misc - it is for less than 3 entities. One says they are a corp - EIN begins with 46.
Not sure if a C or an S. But I guess I can exclude that one.