The 1099-MISC form serves a similar purpose to an independent contractor as a W-2 does to an employee. The 1099-MISC form reports the total amount of payments you receive from a single person or business entity during the year you've been contracted to provide services to them.
Business owners who make payments for services by freelancers or contractors must complete an IRS Form 1099-MISC to send to those “non-employee” workers. If you find that you utilized the services of a contractor or freelancer during the year and made payments totalling $600 or more, you need to fill out a Form 1099-MISC.
Before sending the 1099-MISC to the independent contractors, you must have a W-9 form completed for a tax identification number. Self-employed taxpayers must report 1099-MISC income on a Schedule C attachment to their Form 1040 tax return.
This form is supposed to be sent to recipients no later than January 31, 2016, but the deadline for mailing your 1099s to the IRS is February 28, 2016.