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The Internal Revenue Service (IRS) requires that listing brokers who pay a cooperative commission in excess of $600 to an individual who is not their employee must complete a Form 1099-MISC. While this is not a new law, it has come to NAR’s attention that not all real estate professionals are aware of this requirement.

IRS Requirements

The IRS requires individuals that:

  1. pay compensation of $600 or more to
  2. an individual who is not an employee
  3. for services provided
  4. during the course of the payor’s trade or business

Read more about these requirements and what they mean for your business.

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