Is a manufacturer required to send a report to the IRS when a business purchases a large ticket item ($30k)?

Question

Is a US manufacturer required to send a document (like a 1099 or whatever it might be called) to the IRS when a non incorporated, small business purchases a large ticket item ($30k)?

Answer 1

No. They aren't required. Only if the business was paying in cash would they have to report it (anything over $10,000 in cash has to be reported). They could be planning an expansion and need more equipment. The cost of machinery is so much more nowadays then 25 or 50 years ago. Heavy duty and large equipment can easily run into the hundreds of thousands of dollars or millions of dollars. The only thing I could think of that a manufacturer might think as being suspicious is if a business orders something that normally would have nothing to do with their business. Then it might be worth checking out.

Answer 2

No. All manufacturers report is net income or loss from the total business operation.

$30K isn't that much money anyhow. About 25% of all the cars sold in the US go for more than that.

Now if you purchased a nuclear warhead, that might have been reported to someone, but most likely not the IRS.

Answer 3

Any single cash transaction of $10k or greater is reported to the Treasury Department. The IRS is currently the agency that gathers that data for the Treasure Department.

1099s are cut for service payments, not for sales.

Answer 4

not really they will report the income they recieved as part of the sale but you will want to report as a part of the companies taxes . . . cause it is an expense that will reduce the amount of tax you/company will owe . . .

Answer 5

No. If it is a regulated item, then it might have to file with a regulatory agency.