What Are Some Common Issues With IRS Form 1099?


Quick Answer

Common issues with IRS Form 1099 involve determining the appropriate recipients, understanding penalties, managing exceptions and gathering vendor information, notes Entrepreneur magazine. The 1099 refers to a series of documents known as information returns to report income, explains TurboTax.

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Full Answer

As of 2015, a company issues a 1099 to someone to whom it paid at least $600 in rents, services, prizes, awards or other income payments, reports Entrepreneur. Penalties apply when a company fails to issue the form. An intentional disregard of the form can result in a greater penalty. Exceptions apply to certain corporations or sellers of merchandise. Issuing a W-9 to a vendor prior to paying the vendor gathers all of the appropriate information, such as the entity's tax ID number and mailing address.

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