This terminology is used in Finance and Taxation. Moreover this taxation type is used in the United Nations for independent contractor or workers. The 1099 refers to a form called Internal Revenue Service? (IRS) were in the independent contractor has to state his or her income from any independent business for a particular financial year. A 1099 contractor is not an employee of any business establishment; he or she is a consultant.This terminology is used in Finance and Taxation. Moreover this taxation type is used in the United Nations for independent contractor or workers. The 1099 refers to a form called Internal Revenue Service? (IRS) were in the independent contractor has to state his or her income from any independent business for a particular financial year. A 1099 contractor is not an employee of any business establishment; he or she is a consultant.