Definition:
An information return is a tax document businesses are required to file to report certain business transactions to the Internal Revenue Service (IRS). An information return communicates taxpayer activities or status to the IRS, but no tax is due when the information return is filed.
Here are some common information returns:
- Form W-2 Wage and Tax Statement and Form 1099-MISC Miscellaneous Income Report for Independent Contractors
- Form 1065 Partnership Return, which is filed as an information return. The partners are provided with Schedule K-1, which they file with their personal tax returns.
