If you are in business, whether self-employed or running a company, you must send a 1099 form (with copies to the IRS) to anyone that you pay money to, unless the payments meet one or more of the following exceptions:
- The recipient is a corporation.
- You included the payment in a W-2 form (to an employee).
- The payment is for a tangible product (office supplies, computers, etc).
- The total payments during the calendar year were less than $600.
To make sure that you are reporting the payment item correctly, you should ask the individual or other payee to fill out a Form W-9, Request for Taxpayer Identification Number and Certification, complete with name, address and social security number or taxpayer identification number.