Form 1099 Filing Requirements

1099 Forms must be filed whenever $600 or more is paid to an unincorporated independent contractor (including LLCs). If you aren't sure if the "contractor" is incorporated, request their Federal ID# and send them a 1099. In addition, 1099s are required for amounts paid to attorneys in excess of $600, even if they are incorporated. Please be sure you are receiving a completed and signed form W-9 prior to making payments and that you prepare and deliver 1099s by January 31. The Form 1099 reporting of payments to independent contractors is a top audit target. Failing to file properly prepared 1099s can result in penalties. Further, it may trigger an IRS employment tax audit of your Company's relationship with all of its contractors. Therefore, it makes more sense to deflect this risk by properly filing the 1099s.