Check with your tax adviser or a tax attorney if you think you may have to report non-qualified deferred compensation to someone. Thus, the IRS has every incentive to penalize and audit businesses and individuals that do not correctly report their payments with information returns.
They have to go through a scanner so leave them plain. Copy B is for the recipient. Include prizes, commissions, and awards given to these individuals or businesses.
Note that you may enter information for one or two states. Payers name, address, etc, is you.
You might be paying these individuals under "Professional Fees" or "Other Payments. Leave all the pages whole. Write in the white part of the box, not the red.
If you have a payroll service, check to make sure they have what they need to prepare these forms in January. Also, include payments to non-employees for parts and materials.
Section A refers to a relatively new section of the Internal Revenue Code that has to do with non-qualified deferred compensation plans. A business, employee, or contractor can fill out the form and send it to the IRS, and they will officially determine the classification of the worker.
Box Gross proceeds paid to an attorney explained below.