The Internal Revenue Service requires businesses to send subcontractors a Form 1099-MISC for all tax years in which the business paid the subcontractor more than $600. The subcontractor can then use the form to prepare his taxes. Since a subcontractor is not an employee, the business will not withhold any taxes from the subcontractor's compensation, and the 1099 will only list the total compensation received by the subcontractor during the tax year.

Give the subcontractor a blank W-9 form to fill out. The subcontractor should complete the W-9 form with information about his legal name, business name, type of business, address and Social Security Number or Taxpayer Identification Number.

Enter your business name, address and phone number in the "PAYER's name, street address, city, state, ZIP code, and telephone no." box on a blank 1099 form. Enter your business's Taxpayer Identification Number in the "PAYER's Federal Identification number" box.

Enter the subcontractor's Taxpayer Identification Number from the W-9 form in the "Recipient's Identification number" box on the 1099 form.

Enter the subcontractor's name and business name from the W-9 form in the "RECIPIENT's name" box. Enter the subcontractor's address from the W-9 form in the appropriate boxes.

Enter the total compensation paid to the subcontractor during the tax year in the "Nonemployee compensation" box.

Mail the completed 1099 form to the subcontractor. IRS regulations require you to mail the 1099 form by Jan. 31 of the following year. For example, if you want to send a 1099 form for the 2010 tax year, you must mail the form prior to Jan. 31, 2011.