Form 1099-MISC is used to report certain types of payments made in the progress of a trade or business. If you're in business or self-employed, you may need to submit this report to both the Internal Revenue Service and the person or business to whom so ever you paid.
When is Form 1099-MISC Needed?
Businesses will need to fill outa Form 1099-MISC for persons, vendors, subcontractors, independent contractors, and others in the following circumstances:
- cash payments to fishermen
- crop insurance proceeds,
- medical and health care payments,
- prizes and awards,
- proceeds paid to attorneys,
- rents,
- services (including parts and materials), and
- other types of payments not covered by another information reporting document.
Reporting such payments is required if the recipient of the payment is not a corporation -- for example, when the recipient is an individual, partnership, a limited liability company treated as a partnership or sole proprietorship. Payments made to corporations are required in the case of medical and health care payments and in the case of legal fees paid to attorneys. Other types of payments made to corporations may be reported using Form 1099-MISC, but is not required.
E-Filing Form 1099misc is as easy 1-2-3
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