When do You Have to Send 1099's?

If you have a business and use the services of an individual paying them $600 or more during a calendar year, then you need to send that person a 1099-Misc.  You don't have to worry about sending 1099's to corporations, when you buy merchandise, and when you make payments for personal services for your home. You should ask anyone providing services to your business to fill out a form W-9 before you make the first payment to them. This will give you their address and social security number for the 1099. It can be very difficult getting that information at the end of the year. Penalties for not filing  1099's are up to $250 per failure.