The form 1099-Misc is filed by businesses and self-employed people, primarily for services provided by businesses or people who are not a corporation (except law firms). You’ll need to file a 1099-Misc for everyone last year that you:
Paid $600 or more for
• Services (including parts and materials)
• Prizes and awards
• Other income payments
Paid any amount for
• Services paid to any law firm or attorney
If you paid by credit card or a third party service (i.e., paypal) then you do not include them.
To collect the legal name, address, and taxpayer identification (SSN or EIN), you will need to have the vendor or individual fill out a W-9. This stays with you and doesn’t get filed with the IRS.
If you need assistance with issuing the 1099-MISC to your vendors we can help you in preparing and sending to those individuals.
Steve Eubanks, EA
Strategic Tax Group