When You Must Issue Form 1099-MISC to an Independent Contractor

Form 1099-MISC must be issued to each independent contractor you paid $600 or more during the tax year.

Deadline for Issuing and Filing Form 1099-MISC:

  • The contractor must receive Form 1099-MISC no later than January 31
  • The IRS must receive Form 1099-MISC on or before February 28

If the individual who provides the services to your business is operating his business in the corporate form (he/she is both a shareholder and employee of his own corporation), then Form 1099 is NOT required to be issued to that service provider or to his corporation.

You'll know if the person is operating in the corporate form if you receive a bill with the corporation's name on it and your check is payable to the corporation (payee) rather than the individual.

A corporation is a separate legal entity, separate and apart from its owners. So, when you issue a check for services provided by a person operating out of a corporation, be sure the corporation's name is identified as the payee on the check.

The person providing the service is an employee of his corporation and is paid a salary by the corporation.

File your personal and small business taxes (Schedule C)