The short answer is, it depends. File a 1099 form if an advertising agency:
- Creates an ad or runs an ad for your business
- Is paid $600 or more by your business in the previous tax year
The Internal Revenue Service regards many advertising agencies as independent contractors. A business must send 1099 forms to the contractors if they provide a business with a service that meets or exceeds the minimum $600 threshold.
An ad is a product, but you should remember that the cost of creating and applying ads is a service.
Check the corporation status of any agency that creates your ad. A typical ad agency might be different from a company like a newspaper, which can have a parent company that is classified as a corporation. Do not send 1099 forms to corporations. For tax year 2025, and from tax year 2023 onward, any business with 10 or more information returns must file them electronically to the IRS.
People Also Ask
- Should my business start looking for 1099 form services software? – It is best to get 1099 software as soon as possible to avoid making avoidable manual errors. Getting software that specializes in creating forms for an independent contractor will make it easier to spend more time on other tasks.
- How can software help with 1099 form regulations? – Investing in 1099 software that gives its users tax tables and up-to-date information about 1099 regulatory changes keeps businesses more compliant all year long.
Our W-2/1099 Forms Filer makes organizing multiple form types simple and efficient. Download our free 1099-etc Demo software today and enter real data that carries over once you purchase our program.