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IRS Form 1099-MISC
Practical Law Glossary Item 0-503-2331 (Approx. 2 pages)
Glossary
IRS Form 1099-MISC
A statement of miscellaneous income provided by a company during a calendar year to certain individuals and service providers, including independent contractors and non-employee directors. Payments reported on an IRS Form 1099-MISC include:
- Compensation paid to independent contractors.
- Director fees.
- Health care services to non-employees.
- Prizes and awards valued at $600 or greater (but excluding prizes and awards paid to employees).
However, IRS Form 1099-MISC reporting is not required regarding payments from health flexible spending arrangements (health FSAs) to health care service providers (see Practice Note, Cafeteria Plans: Flexible Spending Arrangements). Also, moving expense reimbursements for new hires should not be reported on IRS Form 1099-MISC (see Practice Note, Fringe Benefits: Moving Expenses).
IRS Form 1099-MISC must be:
- Distributed to the applicable individual or service provider who received the payment, prize, award, or other benefit.
- Filed with the Internal Revenue Service.
For more information on providing an IRS Form 1099-MISC to independent contractors, see Practice Note, Independent Contractor Classification.