Information Returns are tax documents that businesses and organizations must file with the Internal Revenue Service (IRS) to report various types of income paid to individuals or other entities. These forms help the IRS track income that may not be reported on traditional tax returns, ensuring that all income is accurately taxed. Common examples of Information Returns include Form 1099, which reports payments made to independent contractors, and Form W-2, which reports wages paid to employees. By providing this information, businesses help maintain transparency in the tax system and assist the IRS in identifying potential tax liabilities.