| Report Expenses Related To 1099 Income.
Yes! You can issue 1099-Misc's to individuals who perform consulting or contracting work for you.
In order to do that you have to issue them 1099-Misc and send a copy of the 1099-Misc to each individual by January 31, 2009 and you must send a Form 1098 (Annual Transmittal Letter) along with a Red Copy of the 1099-Misc sent to each individual to the IRS prior to Feb 28th, 2009.
I would also consult an Accountant to make you sure this filing is done in compliance with the IRS rules. | 
