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What is the purpose of an IRS 1099 form?

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Quick Answer

The purpose of an IRS 1099 form is to provide information to the Internal Revenue Service regarding any income obtained from nonemployment-related sources, according to Investopedia. There are several types of the IRS 1099 forms.

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Full Answer

An IRS 1099-MISC form is used by independent contractors and self-employed individuals to report their income to the IRS, explains Investopedia. This helps the IRS determine the amount of income tax owed on the stated earnings.

An IRS-1099-DIV form is used by those who own portfolios of stock investments or mutual funds to report their dividends and other distributions received, as reported by Investopedia. Other common IRS 1099 forms include the 1099-INT and the IRS 1099-R forms.

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