When to Send a Company a Misc 1099

by Steve Brachmann; Updated September 26, 2017

Misc 1099 forms are a way for businesses to report payments made to independent contractors during the course of business for the purposes of taxation. State and federal taxation agencies treat taxable income paid to independent contractors differently than regular income, from which the tax is usually withheld before the payment is made. During the course of running your business, your business may pay for certain business services that require you to file a Misc 1099 to be sent to the servicing company for tax purposes.

When to Report

Usually Misc 1099 forms are not sent to a company. However, if the transaction was completed for the financial gain and profit of both parties, then a Misc 1099 form must be sent to the company which received the payment. Companies that are subject to these reporting standards include nonprofit organizations, trusts of qualified pension and employer profit-sharing plans.

Reportable Corporate Payments

Many of the conditions that require one business to send a Misc 1099 form to another business involve business services rendered. These reportable payments include any medical or health care payments, payments substituted for dividends or tax-exempt interest and fees paid to an attorney firm. Purchases of fish for retail sale or any other business gain must also be reported at purchases of $600 or more.

Filling Out Form

The Misc 1099 form is separated into 18 boxes, which itemize the reportable payments which are included in the tax form. Box 7, titled "Nonemployee compensation," is where attorney's fees, fish purchases or purchases from federal agencies are reported. Box 6 contains any medical and health care payments; substitute payments in lieu of dividends or interest are reported in Box 8; and attorney's fees are reported in Box 14.

Filing Due Date

Misc 1099 forms must be filed by a certain date by a business in accordance with state regulations on tax filings. This usually occurs a few months before Tax Day; in the state of Michigan, Misc 1099 forms must be filed by Feb. 28. Misc 1099 forms must be filed with the treasury department within your state of business before they are sent to specific businesses.