Thank you Kristine. For anyone who reads this thread, here is the full story, which I only found out after multiple calls/chats/searches with various parties:
The IRS REQUIRES that you use their red-ink, scannable paper forms for 1099s and the 1096 that comes with them. You MUST use these forms. They are carried at Office Depot and other supply stores. If you are in a hurry and don't have time to order them through Quickbooks, drive to the store, buy the forms, take them back to your office and use them in your printer via Quickbooks to fill them out. You will save yourself time if you buy the type of forms that come with envelopes.
On Quickbooks online, you will need to use the "finish 1099s" window several times to print 1) the red 1099 form for the IRS; 2) the red 1096 form which must be submitted to the IRS with the 1099s; 3) a black and white 1099 Form B to submit to your contractor; and 4) a black and white 1099 Form C to keep for your records.
I wish this post had been here when I needed it! Good luck!
