What is a 1099 form?
A 1099 form is a record that an entity or person other than your employer gave or paid you money. The payer fills out the 1099 form and sends copies to you and the IRS. There are several kinds of 1099 forms. For more information head to the IRS website.
I am an organization distributing funds through ESTHER cards - do I need to produce 1099 forms for recipients and submit to the IRS?
No. As recipients are receiving these funds as donations, and not in return for goods and services, no 1099 form needs to be produced and submitted.
Are you sure?
ESTHER has done extensive research into why and when 1099s forms are submitted, and consulted expert Tax Advisors to ensure we have clarity on this topic. However it is worth checking your state laws around this area and consulting your tax advisor.