How to File 1099-MISC with the IRS

Form 1099-MISC can be filed by paper or electronically. The IRS prefers electronic filing as it saves on labor costs. However, electronic filing does, at a minimum, require the use of IRS-approved software. Many professional-grade accounting software packages (i.e. QuickBooks Premier) provide users with access to electronic filing solutions.

Paper filing is very similar to online filing as the information required is the same. Paper forms may be purchased at any office supply store after the first of the year. The IRS does not recommend using downloadable PDF versions for paper filing as the IRS may not be able to scan the form when printed from your printer. Forms that cannot be scanned may subject the filer – you – to IRS penalties.

In order to file your 1099s, you will need to gather certain information:

  • The non-employees social security number and mailing address (from form W-9)
  • Gross amount paid to the non-employee for services, parts, materials, supplies, and sub-contracted work
  • The purpose of each payment – different payment purposes may go into different boxes
  • The total amount of any federal or state tax withholdings from the non-employee – if any
  • You will also need your business tax identification number (which may be your social security number if you operate as a sole proprietor), business address.

For the purposes of filling out the form, the non-employee is the Recipient, and you are the Payer. The paper form comes in four parts: Part A – the one printed in red – is filed with the IRS. The very last copy – labeled C – is for your records. If your state requires it, Copy 1 is for them from you. Copy B is what you give or mail to the non-employee.