Are There Any Exceptions or Exemptions to Filing 1099 forms?

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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