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Form 1099 is a series of IRS tax forms used to report various types of income other than wages, salaries, and tips. For example, Form 1099-MISC is used to report payments made to independent contractors.
Companies need to issue a 1099 form to the payee and the IRS when they pay certain types of income. The payee uses this form to fill out their income tax return. For businesses, the process of issuing 1099 forms is a critical part of year-end tax preparation.
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