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In USA, tax payers and tax-exempt organizations uses IRS tax forms to report financial, income and other information to the Internal Revenue Service of the United States. There are different 800 forms used to report income related information. To report different types of income other than salary, wages etc. 1099 form series is used. 1099 forms are refers to individual contractors who are not work as employee, they do not work regularly as employee but work as required. They work as a freelancer and also paid according to freelance. Any company, organization or small business owner that pay $600 or more in a year to an independent contractor must report about the income information to the IRS as well as contractor by using Form 1099 Misc. Personal income do not report by using these forms.

It is not require filling 1099 forms if someone is employed in a firm or registered company or organizations. If you are employer of a company and you got this type of form then it must be happened by mistake, you must have to correct it by informing the employer and also IRS. W2 form is required for this income tax purpose. It's your duty to report about your income to IRS for tax filing purpose because you are not registered as a corporation, owner of limited company etc.

You are working for yourself as a independent person or as a professional who are hired by a company or small business owner or firm on a contract basis, so you eligible to receive form 1099 on or before 31st January. When you receive this type of form, you must take a look on ”Non employee compensation” that contains your annual income paid by the company, firm or small businessmen who hired you and report the IRS about the income paid to you. You also have to check this information on Schedule C and the payment that accurate or not, it is because company not only sends you 1099 form but also filled it with IRS. You must submit same form with the IRS in the end of February.

If there is mistake in amount of income paid to you on the 1099 Misc Form issued to you by company then should contact the company who issued it you to resolve this. If there is mistake by them, they must issue a new corrected form to you and wait until you receive corrected form to file your tax return. You must check the income amount both in 1099 and your Schedule that income amount is same or not. If there is difference in amount then IRS will demand explanation about this difference.

So, check carefully about the amount of income in both 1099 Form and Schedule C and report your income on Schedule C if you don't receive the 1099 Form. It is not a problem if you file your tax return before or without receiving 1099 form. If you did not report your 1099 based income and you get the 1099 Form after filing tax return then there must be late payment penalties and increasing the amount of tax. So it's advised you to be very careful while filing your tax return and reporting your 1099 income.