by 
The Curious Bag
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The Internal Revenue Service has dozens of different tax forms that sometimes befuddle the taxpayers, especially since they are identified by numbers, such as the 1099. The 1099 is a fairly common tax form, but employees usually never need to file one.
Facts
Businesses must file a 1099 when they pay some to do work for them, but is not an employee. These workers are often called contractors or "independent contractors"
Function
A business must send its contractors a 1099 by Jan. 31 of each year they work. The contractor must then file electronically by March 31, or send the paper form by Feb. 28.
Considerations
As of 2009, those who make less than $400 in the fiscal year from any particular business or institution do not have to file a 1099, according to the IRS's online copy of the 1099.
Penalties
Failure to fill out and return the 1099 to the IRS by the March 31 deadline results in a $15 to $50 fine, depending on how late you file it. For businesses, penalties for failure to furnish a 1099 to employees can get up to a $250,000 fine, according to the IRS.
Warning
Do not attempt to file a 1099 printed off of the IRS website as this copy is only available for reference, according to the IRS. Filing a printout of this version could entail a $50 fine..
Source:
FileTaxes; What is a 1099-MISC?
Internal Revenue Service; 1099 Form
Internal Revenue Service; General Instructions for Forms 1099, 1098, 3921, 3922, 5498, and W-2G
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