Article Highlights:
- The IRS Form W-9 is used to obtain independent contractors’ tax ID numbers.
- Tax ID numbers are required when filing 1099s.
- 1099-MISCs must be issued to independent contractors that are paid
$600 or more during the year for performing services for a trade or
business.
If you used independent contractors to perform services for your
business or trade, and you paid them $600 or more for the year, you must
issue them a Form 1099-MISC to get the deduction for their labor and
expenses and avoid potential penalties. (This requirement generally does
not apply to payments made to a corporation. However, the corporation
exception does not apply to payments made for attorney fees and for
certain payments for medical or health care services.)
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