Yes, the Internal Revenue Service provides certain exemptions for filing 1099 forms for freelance workers. Familiarize yourself with the exceptions before you hire a contractor. Do not submit 1099 forms if you:
Make payments to corporations. Do not send Form 1099-MISC or any other 1099 forms when you make a payment to a corporation. The same rule applies to LLCs and partnerships that hold an S or C corporation classification. The exemption does not extend to a law firm that you paid $600 or more.
Accept rent payments through a real estate agent. Your tenants should not expect any 1099 forms if they pay you rent through a real estate agent or a property manager. Use IRS Schedule E to report their payments through these intermediaries.
Make payments to a tax-exempt organization. Confirm that any organization that you do work with is tax-exempt before you assume it. A tax-exempt organization organizes and registers with the IRS before contributing charitable, religious, and/or scientific work.
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