What is a 1099 tax form?

If you are wondering what a 1099 tax form is, it is an information return tax form. That means the 1099 tax forms are used to report certain business transactions to the IRS. There are many other forms that you must use to report business transaction information to the IRS, not just the 1099 forms.

What is an Information Return?

According to the IRS, an information return is a tax document businesses are required to file to report certain business transactions to the Internal Revenue Service (IRS). The requirement to file Information Returns is mandated by the Internal Revenue Service and associated regulations.

Below is an image of a 1099 MISC tax form which is one of many 1099 tax forms to report as an information return to the IRS.