You may need to file Form 1099 for payments of $600 or more made to;
- Subcontractors
- Individuals for other services
What if I do not check the box?
If you do not check the box you will not see any penalties within the program. However if you are required to file Form 1099 and do not, you could owe penalties to the IRS. For more information on what the penalties could be, please see the IRS website here.
Why does the IRS need this information?
If you made a payment of $600 or more on behalf of your business, you are required to file Form 1099. The IRS will use the amounts reported on Form 1099 to match the amounts reported on the return of the recipient.
If you would like more information on information regarding how to file the correct information based off the type of payment that you made, please visit the IRS website here.