The IRS uses Form 1099 as a tool to help verify that taxpayers are reporting their income. Businesses file Form 1099 with the IRS to report payments to vendors or recipients, then the IRS attempts to verify that these payments are actually reported as income on the tax return of that individual or company. For the reporting year 2014, businesses need to prepare 1099s in time to be given to vendors by February 2, 2015, and IRS copies must be filed by March 2, 2015. The IRS due date is extended to March 31, 2015, for electronically filed returns.