If you engaged in certain financial transactions during the calendar year as a small business or self-employed (individual), you are most likely required to file an information return to the IRS. Below are some of the transactions that you have to report.
Being in receipt of a payment may also require you to file an information return. Some examples include:
Keep in mind that information is for businesses. You will not have to file an information return if you are not engaged in a trade or business. You also will not have to file an information return if you are engaged in a trade or business and 1) the payment was made to another business that’s incorporated, but wasn’t for medical or legal services or 2) the sum of all payments made to the person or unincorporated business was less than $600 in one tax year.
This is just an introduction to a complicated topic, and the mechanics of filing such a return are filled with essential details. If you're running a business, even a small one, be sure to discuss the details with a qualified professional.
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