The 1099 form is a tax form used to report income to the Internal Revenue Service. However, it is up to the entity who is paying out the monies to submit this form. It is used specifically to report income from unusual sources from sources other than a wage-paying job. Often people have income a little bit here and there or a big chunk all at once and they wonder whether the entity paying them is going to file a 1099 form. Businesses need to know when this form should be used.
Some common situations that would require use of a 1099 form are:
There are also some lesser-known instances in which a 1099 form should be used. As we all know ignorance is no excuse when it comes to the IRS. It is up to each business owner to know the laws and guidelines of all tax reporting. The eFileMyForms website provides a library of articles to help you learn about tax laws and requirements, and stay abreast of changes.
Here are additional situations that require submission of a 1099 form. As you can see they each have their own unique extension:
The list above was excerpted from the irs.gov website.
When you submit a 1099 to the IRS, the person who received the income must be mailed a copy. The 1099 forms that your business supplies to the IRS are also used by your contractors your freelancers to complete their tax returns. With all the different reasons why you would need to submit a 1099, it can be a daunting task. This is why eFileMyForms was created, to make the filing of one or 100 tax forms a faster and simpler process. After years of doing nothing but electronic filing for taxpayers, the eFileMyForms team has honed the process to the leanest and meanest that it's ever been.
Read about our easy four step process for electronically filing any and all tax forms here.