The 1099 Form and its variations are among the most filed tax forms in the United States. Put simply, this is a record that your business paid a person money, and that individual was not a formal employee. There are currently around twenty different types of Form 1099, each of which has its own function. Some are used to account for interest income, while others are used for government payments, proceeds from real estate transactions, and miscellaneous income.
But how do you know a payee should receive a 1099 instead of a W-2? Which type of 1099 best fits your situation? Why are there so many copies of the form, and to whom should they go? These questions are common for such a ubiquitous, widely used cluster of forms, but that doesn’t make them any easier to answer. This resource is designed with that in mind. Whether you’re here for additional information about Form 1099 or you need to correct an error, this FAQ has the answers you need. Below, you’ll find information about common 1099 mistakes, issues, and questions – from how to amend a 1099 where to obtain an e-file transmitter control code.