Who and What Is 1099 Reportable and Why?

The reporting you do on 1099 and, to a certain extent 1042-S, forms is used by the IRS to compare amounts you paid to recipients to the amounts they report in their income tax returns. If you report incorrectly, it may result in penalties for both the recipients and your organization as well as tax harm to the recipients. Is It Reportable? IOFM's third-party tax experts' advice is to assume both a payment and a payee are reportable, unless the payer can establish an exemption for either the…