What are the 1099 filing requirements for payments to subcontractors?

ALICIA SHAUL
CPA MBA

Any business that pays $600 or more in any calendar year to an individual, LLC or partnership for services provided has a 1099 filing requirement. These services can include subcontractor work, extra labor or repairs. Generally, payments to corporations or LLCs taxed as corporations are exempt from the 1099 filing requirement (e.g. businesses do not need to issue 1099s to corporations like MidAmerican Energy, Verizon, etc.). Payments to attorneys still have a 1099 filing requirement regardless of whether the law firm being paid is a PC or not. Form 1099-Misc must be provided to the recipient by January 31 of each year. Forms 1096 and 1099 must also be submitted to the IRS and State of Iowa (if any state income taxes are reported) by January 31. Companies issuing 250 or more 1099s must electronically file the reports. ♦