1099 Requirement Guidelines
When certain payments are made in the course of trade or business the payments must be reported
on federal form 1099-MISC on an annual basis. Generally, any of the following payments of $600
or more must be reported to the recipients by January 31, 2019:
2. Services performed by someone who is not your employee (including parts and
materials). Examples: fees to subcontractors or directors
3. Prizes and awards
4. Other income payments
5. Medical and health care payments
6. Crop insurance proceeds
7. Cash payments for fish (or other aquatic life) you purchase from anyone engaged in the
trade or business of catching fish
8. Generally, the cash paid from a notional principal contract to an individual, partnership,
9. Payments to an attorney
10. Any fishing boat proceeds
You also must file Form 1099-MISC for each person from whom you have withheld any federal
income tax under the backup withholding rules regardless of the amount of the payment.
Non-employee compensation is also required to be reported to the Internal Revenue Service
by January 31, 2019. All other payments reported on Form 1099-MISC, Form 1099-INT, Form
1099-DIV and Form 1099-R are required to be reported to the Internal Revenue Service by
February 28, 2019. If your trade or business is required to issue any of the above referenced
information returns, a Form W-9 (Request for Taxpayer Identification Number and Certification)
should be requested from the payee in order to obtain and report the correct information.
Generally, the following payments are not reportable on Form 1099
• Payments to a corporation (including a limited liability company (LLC) that is treated as a C or S
However, you must report payments to corporations for the following:
Fish purchases for cash
Medical and health care payments
Gross proceeds paid to an attorney
Substitute payments in lieu of dividends or tax-exempt interest
Payments by a federal executive agency for services (vendors)
• Payments for merchandise, telegrams, telephone, freight, storage, and similar items.
• Payments of rent to real estate agents or property managers
• Wages paid to employees (report on Form W-2, Wage and Tax Statement).
• Military differential wage payments made to employees while they are on active duty in the
Armed Forces or other uniformed services (report on Form W-2).
• Business travel allowances paid to employees (may be reportable on Form W-2).
• Cost of current life insurance protection (report on Form W-2 or Form 1099-R, Distributions from
Retirement Plans, Insurance Contracts, etc.).
• Payments to a tax-exempt organization including tax-exempt trusts (IRAs, HSAs, Archer MSAs,
Coverdell ESAs, and ABLE (529A) accounts), the United States, a state, the District of Columbia, a
U.S. possession, or a foreign government.
• Payments made to or for homeowners from the HFA Hardest Hit Fund or similar state program
(report on Form 1098-MA).
• Compensation for injuries or sickness by the Department of Justice as a public safety officer
disability or survivor's benefit, or under a state program that provides benefits for surviving
dependents of a public safety officer who has died as the direct and proximate result of a personal
injury sustained in the line of duty.
• Compensation for wrongful incarceration for any criminal offense for which there was a
conviction under federal or state law. See section 139F, Certain amounts received by wrongfully
The 1099 filing rules are extensive. If you have any questions, please feel free to contact our office
for assistance. You can also obtain complete instructions on the IRS website @