File 1099 Forms Online with the IRS Securely & Quickly

When managing non-employment income, it's crucial for employers to utilize specific versions of the 1099 form to accurately report earnings to the IRS. For instance, independent contractors and freelancers who accumulate $600 or more in non-employment income should be provided with a Form 1099-NEC , and it is imperative for them to report this income on their tax returns. Dividend income, however, is appropriately documented using the 1099-DIV, while interest income is disclosed through the Form 1099-INT.

Payors should recognize the significance of 1099 forms in monitoring income that falls outside the scope of wages or salary recorded in a W-2. Notably, the Internal Revenue Service (IRS) diligently cross-references all 1099s and W-2 forms (the wage-report forms submitted by employers) with the information provided in Form 1040 tax returns or other applicable tax forms. A lack of alignment between these forms could prompt the IRS to notify the taxpayer of potential discrepancies resulting in penalties, additional tax, and interest on unpaid tax.