Q:

What are some common issues with IRS Form 1099?

A:

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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