1099 Form: Overview, Types, Uses, and Who Receives It.

1099 Form and its varieties are used to report taxable income to the Internal Revenue Service (IRS). Parties who issue these income payments are responsible for notifying the IRS that the transaction has taken place. They do so by providing a 1099 Form to the IRS.

The IRS will then compare the taxpayer's tax return to the information presented on any Form 1099 under their name and their tax identification number.