The IRS has an information program that requires businesses to file certain information returns. The various 1099 forms are part of this program. Businesses are required to issue 1099s for various types of payments made to independent contractors, professional service providers, and other individuals and entities. The IRS matches the 1099 information to the applicable party to ensure that the payments received are properly reported as income. It is important for small businesses to comply with the 1099 reporting requirements; the IRS imposes tough penalties for non-compliance

1099-Misc Form You Have To File 

1099-MISC. This is the one you're probably most familiar with. This is the form you use for independent contractors. Many businesses only consider those individuals who do work related to the purpose of the business.

For example, a mechanic might give 1099s to a subcontractor who has his own mechanic shop. But you have to provide a 1099 to any business other than a corporation who performs services for your business.

You must also send a 1099 to the person to whom you pay office or other rent.

Here's a list of other payments that might have to be reported on a 1099:

1. Payments to attorneys (even if a corporation)

2. Auto reimbursements

3. Awards

4. Bonuses

5. Commissions

6. Compensation

7. Damages

8. Fees
9. Fishing boat crew members proceeds
10. Health care services (even if a corporation)
11. Nonqualified deferred compensation
12. Prizes
13. Rents
14. Vacation allowance

15. Nonemployee payments