What is a 1099 tax form?
If you are wondering what a
1099 tax form is, it is an information return tax form.
That means the 1099 tax forms are used to report certain
business transactions to the IRS. There are many other forms
that you must use to report business transaction information to
the IRS, not just the 1099 forms.
What is an Information Return?
According to the IRS, an information return
is a tax document businesses are required to file to report
certain business transactions to the Internal Revenue Service
(IRS). The requirement to file Information Returns is mandated
by the Internal Revenue Service and associated regulations.
Below is an image of a 1099 MISC tax form
which is one of many 1099 tax forms to report as an information
return to the IRS.