Tax Questions Blog
Who do I give a 1099 to?
There are many taxpayers and businesses asking who do I give a 1099 to. A 1099 tax form is an information return tax form that is usually sent to two parties:
- the IRS, and
- the payee or recipient
According to the 1099 rules set forth by the IRS, a corporation, a partnership, an individual, an estate, and a trust, to name a few, just file information returns to the IRS to report certain business transactions.
For a business, who do I give a 1099 to?
If you are a business and you incur certain business transactions that must be reported to the IRS, then you need to send out the 1099 forms. You must report the transactions to the IRS for certain and you should send the same 1099 forms to the payees. However, some businesses are not complying with the IRS rules and do not send out 1099 forms to the payees.
For a taxpayer, who do I give a 1099 to?
If you receive a 1099 form, then you are not required to give it to anyone. You are required to use the information on the 1099 form to file your tax return. You are supposed to keep the 1099 forms that you receive for your records in case the IRS should have any questions about them or the business transactions. If the IRS decides that the information you put on your tax return is incorrect, you can just produce the 1099 forms in question and send to them as proofs. Otherwise, keep the 1099 forms for your records.
Tax Questions is a resource and information website only. We do not offer individual advice. For specific tax questions and answers, you are advised to consult your tax attorney.