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Am I Required to File a Form 1099 or Other Information Return?

posted Dec 7, 2014, 11:14 AM by Zaher Fallahi

If you made or received a payment during the calendar year as a small business or self-employed (individual), you are most likely required to file an information return to the IRS. This page is applicable to specific and limited reporting requirements.  


Made a Payment

If, as part of your trade or business, you made any of the following types of payments, use the link to be directed to information on filing the appropriate information return.

Payments, in the course of your trade or business: 1099-Misc. It is important that you place the payment in the proper box on the form.

Services performed by independent contractors or others, not employees of your business,  (Box 7)

Prizes and awards and certain other payments (see Instructions for Form 1099-MISC, Box 3. Other Income, for more information)

Rent (Box 1)

Royalties (Box 2)

Backup withholding or federal income tax withheld (Box 4)

Crewmembers of your fishing boat (Box 5)

To physicians, physicians’ corporation or other supplier of health and medical services
(Box 6)

For a purchase of fish from anyone engaged in the trade or business of catching fish (Box 7)

Substitute dividends or tax exempt interest payments and you are a broker (Box 8)

Crop insurance proceeds (Box 10)

Gross proceeds of $600 or more paid to an attorney (generally, Box 7, but see instructions as Box 14 may apply)

Interest on a business debt to someone (excluding interest on an obligation issued by an individual) (1099-INT)

Dividends or other distributions to a company shareholder (1099-DIV)

Distribution from a retirement or profit plan or from an IRA or insurance contract (1099-R)

Payments to merchants or other entities in settlement of reportable payment transactions, that is, any payment card or third party network transaction (1099-K)


Received a Payment and Other Reporting Situations

If, as part of your trade or business, you received any of the following types of payments, use the link to be directed to information on filing the appropriate information return.

Payment of mortgage interest (including points) or reimbursements of overpaid interest from individuals (1098)

Sale or exchange of real estate (1099-S)

You are a broker and you sold a covered security belonging to your customer (1099-B)

You are an issuer of a security taking a specified corporate action that affects the cost basis of the securities held by others (Form 8937)

You released someone from paying a debt secured by property or someone abandoned property that was subject to the debt (1099-A) or otherwise forgave their debt to you (1099-C)

You made direct sales of at least $5,000 of consumer products to a buyer for resale anywhere other than a permanent retail establishment (1099-MISC)


Not Required to File Information Returns

You are not required to file information return(s) if any of the following situations apply:

You are not engaged in a trade or business.

You are engaged in a trade or business and the payment was made to another business that is incorporated, or the sum of all payments made to the person or unincorporated business is less than $600 in one tax year (unless the recipient is an attorney or law form, see specific instructions for1099-MISC for further details).

Zaher Fallahi, CPA is a California IRS Defense Attorney, and practices as Los Angeles Tax CPA and Orange County Tax CPA. Los Angeles (310) 719-1040 and Orange County (714) 546-4272, e-mail: