The Form 1099 series of the Internal Revenue System (IRS) encompasses several versions. These versions are: 1099-A, 1099-B, 1099-C, 1099-CAP, 1099-DIV, 1099-G, 1099-H, 1099-INT, 1099-LTC, 1099-MISC, 1099-OID, 1099-PATR, 1099-Q, 1099-R, 1099-S, 1099-SA, 1042-S, SSA-1099, SSA-1042S, RRB-1099, RRB-1099R, RRB-1042S, and W-2G; proper description of the forms within the series are available through the IRS. Each variant is for a specific filing purpose. Form 1099 is used to denote other sources of income other salaries and wages.
Every version of the Form 1099 has its corresponding requirements. The IRS help section lists some guidelines for filing Form 1099. Form 1099-A should be filed for the acquisition or abandonment of secured property. Form 1099-B is used to report income generated from proceeds from broker and barter exchange transactions. Form 1099-C is filed for cancellation of debt. The IRS requires certain conditions before the cancellation is made to be valid. Form 1099-CAP is filed to account the changes in corporate control and capital structure. Form 1099-DIV is used to account dividends and distributions. Forms 1099-G, 1099-H, 1099-INT and 1099-LTC are filed to account for government payments, health insurance and advance payments, interest income, and long term care benefits irrespectively. Form 1099-MISC is filed to account for miscellaneous income. Form 1099-OID is filed to account for original issue discount. Form 1099-PATR is filed to account for taxable distributions received from cooperatives. Form 1099-Q is for payment from qualified education programs. Form 1099-R is filed to account for distributions from pensions, annuities, retirement plants, IRA's, and insurance contracts. Form 1099-S is used for proceeds from real estate transactions. Form 1099-SA is filed to account for distributions from an HAS, Archer MSA, or Medicare Advantage MSA. Form 1042-S is used for foreign person's U.S. source income. SSA-1099 is filed to account for Social Security benefit statement. SSA-1042S form is used to account for Social Security benefit statement to nonresident aliens. Form RRB-1099 is filed to account for payments by the Railroad Retirement Board. Form RRB-1099R is used to account for pension and annuity income by the Railroad Retirement Board. Form RRB-1042S is used for payments by the Railroad Retirement Board to nonresident aliens and the FormW-2G is filed to account for certain gambling winnings.
The problem with 1099 tax filing is that it requires bulk filing. In the case of the businesses, they have to file several 1099 tax forms a year. The company should file the required 1099 forms for every employee. If the number of 1099 forms that must be filed exceeds 250 forms, this should be filed electronically using e-file system of the IRS.