This article is for platforms or marketplaces.
The 1099-MISC is a tax information form generally used to report any payments made to a service provider or contractor. This helps the IRS track how much they can expect in taxes from contractors and those who are self-employed.
Independent contractors must handle their own taxes, whereas companies automatically withhold taxes for their traditional, W-2 employees.
The company or business owner that makes payments to the service provider or contractor for their services is required to report those payments to the IRS and also send a copy to the service provider or contractor.
Many businesses that have previously filed the 1099-MISC to report non-employee compensation in Box 7 will now use the 1099-NEC. See Intro to 1099-NEC tax forms for platforms and marketplaces.
The service provider or contractor receives a copy for their records and the IRS also gets a copy—either through electronic filing or paper mailing.
Typically, companies are only required to send 1099-MISCs to service providers or contractors who’ve been paid $600 or more in a calendar year and are based in the US or are US taxpayers.
The deadline to report 2024 tax forms to the IRS through Stripe 1099 is January 22, 2025.
Keep in mind that your state may also have requirements and separate deadlines for reporting 1099-MISCs and filing them. We recommend consulting a tax advisor to determine your state filing requirements.
Anyone issuing ten or more 1099 forms is required to e-file with the IRS.
IRS penalties ranging from $60 to $310 per form may apply for each instance where you:
Larger penalties may be enforced where there is evidence of intentional disregard or neglect.
This article is neither legal advice nor tax advice. We recommend that you speak to your tax advisor with any questions or concerns around tax reporting.