If you hire an independent contractor, you must notify the IRS and the independent contractor the amounts paid for his or her services. You must file Form 1099-MISC (Miscellaneous Income) for each person, other than a corporation, who:
Was paid at least $600 in rents, royalties, services, or prizes and awards.
Had federal income tax withheld under the backup withholding rules, regardless of the amount of payment.
For-profit organizations and certain non-profit organizations are subject to these requirements. You must file the forms with the IRS and send Form 1099-MISC to the independent contractor by the federal payroll tax deadlines. The independent contractor will include a copy when filing his or her tax return.
When you file printed (instead of electronic or magnetic) versions of Form 1099-MISC with the IRS, you must also file Form 1096 (Annual Summary and Transmittal of US Information Returns) with the IRS.
Note: QuickBooks will print Form 1099-MISC and Form 1096, but does not handle other types such as Form 1099-INT or Form 1099-DIV.
For detailed information on who should receive Form 1099-MISC and guidelines you should be aware of when you distribute 1099-MISC forms, contact the IRS.
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