Hello. I will respond to your question.
Yes, you are required to provide a Form 1099 to each subcontractor in order to substantiate your business deduction expense.
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is this require by IRS law ?
Yes. The requirement to provide a form 1099 is part of the Internal Revenue Code.
can you direct me please to related paragraphs of this law .
Give me a few moments to research that.
I am still researching.
I appreciate it.
My internet is slow this morning, but I will get the information for you.
Until this year we were require to give 10999 MISC only to proffessional lawyers etc. but this year is very confusing .
The instructions and requirements for form 1099-misc can be found at http://www.irs.gov/pub/irs-pdf/i1099msc.pdf. If your subcontractor is an individual to whom you paid more than $600.00, you must provide a form 1099. If your payment was to a corporation or limited liability company, you are not required to provide a form 1099, but may do so.
I hope that this information is useful. Please be sure to leave a positive rating for my response so that I will be compensated for my time. Good luck with your year-end taxes.
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