Who typically fills out the 1099 form?

The 1099 form is primarily filled out by the employer providing the payments, which is why this is the correct answer. Specifically, the 1099 form is used to report various types of income other than wages, salaries, and tips, which are reported on W-2 forms. This includes payments to independent contractors, freelancers, and other non-employees who receive $600 or more in a tax year.

Employers or payers are responsible for completing and submitting the 1099 form to report these payments to both the IRS and the recipient of the income. This process ensures that income is properly accounted for and taxed, maintaining compliance with federal tax regulations. The recipients then use the information provided on the 1099 to report their income when filing their tax returns.

Other options do not match the responsibilities outlined in tax reporting. Employees do not fill out 1099 forms; they receive them to report income. The IRS does not complete 1099 forms; it establishes the necessary reporting requirements for payers. The state tax authority has its own forms and reporting mechanisms, separate from the federal 1099 system.