1099-MISC is required to be filed if you paid $600 or more during the tax year in the course of your trade or business to an individual or partnership. Payments for services (including parts and materials) are the most common 1099-MISC filings. You are generally not required to file a 1099-MISC for payments to a corporation unless the payments were for medical, health care, legal or fishing activities.
The penalty for not filing a 1099-MISC is up to $100 per form. If you had six contractors in your business that you failed to file the required 1099-MISC, your penalty could be up to $600.
To gather the information you would need to file these forms, have the payee complete a W-9.
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