Registration services like 4DiscGolf are required to send a 1099 form at the end of the year if the total meets or exceeds $600. As our sport is growing and tournaments are getting larger we have seen an increase in attention from the IRS. Tournament directors using our registration service, and others, have received letters from the IRS questioning why taxes have not been paid on tournament funds. Tournament expenses often offset the income reported on the 1099 form and when you do your taxes it will result in a negligible or negative (aka refund) tax liability. Our goal is to help provide the correct information and encourage you to keep good records of your expenses so that you can accurately and correctly provide the IRS with the information they require.
If you don't know what to do with a 1099 form we highly recommend you contact a tax consultant now. Ignoring a 1099 form when you do your taxes is a red flag to the IRS that you may have received funds that you owe taxes on. Your tax situation is unique to you and we are not tax advisors, please take the time to contact a tax professional if you are not comfortable reading and understanding IRS documents.
FYI, you are required to submit a 1099 form for pro players that receive $600 or more in a calendar year from your events. This means you will need them to fill out a W-9 form when they reach that threshold.