Information current as of August 2016:
You ARE NOT REQUIRED by the Internal Revenue Services (IRS) to file FORM 1099 Information Returns if you are engaged in a trade or business and the payment was made to another business that is incorporated, or the sum of all payments made to the person or unincorporated business is less than $600 in one tax year (unless the recipient is an attorney or law form). Otherwise, you may be required to file FORM 1099.
NOTES:
- You do not need to complete a FORM 1099 for your web hosting service, because these payments are made to a corporation (EZOT, Inc.).
- Website consulting and support are being handled by PRECISION COMPUTING ARTS, LLC (an LLC, not a corporation, owned by Larry Gotkin), so you may need to complete FORM 1099 for consulting and support services.
- IRS Forms and information:
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Form 1099: https://www.irs.gov/uac/about-form-1099misc
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Form W9: https://www.irs.gov/uac/about-form-w9
Please consult your tax professional if you have questions.
Additional Information about W9 / 1099 (Paraphrased from Investopedia)
Businesses use IRS form W-9, Request for Taxpayer Identification Number and Certification, to obtain information from independent contractors (aka freelancers). A business that pays an independent contractor $600 during a tax year is required to report these payments to the IRS on FORM 1099-MISC, Miscellaneous Income.
Businesses that hire independent contractors do not withhold income tax or pay Medicare or Social Security taxes for their independent contractors, as they do for their employees; contractors are responsible for these obligations. However, the IRS uses form 1099-MISC to find out how much these contractors are being paid in order to make sure the contractors pay the taxes they owe.
More at : http://www.investopedia.com/articles/personal-finance/082714/purpose-w9-form.asp#ixzz4CFTcN1sk
