1099 Filing

If your business made payments for services performed for a trade or business by people not treated as its employees you may need to file Form 1099-MISC. Usually, businesses file Form 1099-MISC when they need to report miscellaneous income for payments of $600 by people not treated as its employees. Common 1099-MISC filing examples include:
  • Substitute dividends and tax-exempt interest payments reportable by brokers.
  • Fees to subcontractors or directors and golden parachute payments.
  • Fish purchases paid in cash for resale.
  • Gross proceeds paid to attorneys.
  • Crop insurance proceeds.

1099 Filing Requirements

E-File Threshold

If you need to file more than 250 1099-MISC forms, you are required to file electronically with the IRS.

Federal Transmittal

In addition to filing Form 1099-MISC to the IRS, you may be required to file a transmittal (cover sheet). If you are sending paper copies to the IRS you will need to include Form 1096. This transmittal is not required if you are filing electronically.

1099 Copies

If your business is required to file Form 1099-MISC, you will need to provide multiple copies. To avoid penalties, make sure to send the correct copy to the correct audience (when applicable).

Copy A

For Social Security Administration

Copy B

Filed with Employee's Federal Tax Return

Copy C

For Employee's Record

Copy D

For Employer

Copy 1

For State, City, Local Tax Department

Copy 2

Filed with Employee's State, City Local Income Tax Return