You must also give a copy of each information return you file to the payee. See the Instructions for the Requester of Form W-9 for more details. . See the Instructions for Form 1099MISC for details. However, do not assume that all businesses are corporations. You may rely an a Form W-9 that states the payee is a corporation or an exempt payee, to determine whether information reporting is required. .
Higher penalties apply to failures due to an intentional disregard of the reporting rules. .
If you file 250 or more information returns, you must file an magnetic media or electronically. In addition, you may have to use other information returns to report other types of transactions. With just an Internet connection and a Web browser, businesses can get some relief by e-filing their quarterly employment federal tax returns. By filing Form 941 this way, returns are processed quickly and calculation errors virtually eliminated. Currently, Nationtax Online is the only IRS approved provider of this service.