Now is a great time to ensure that you’ll be ready for preparing those year-end 1099-Misc Income forms.
Often small businesses are required to send out 1099-Misc forms to vendors who have provided services totaling $600 or more for the year. Run and review your year-to-date vendor payment report to ensure you have a complete form W-9 form on file for those vendors who will receive 1099-Misc forms so you’re not scrambling to collect information in January.
Don’t forget your landlord, as depending on the type of entity you paid, rent should also be reported on form 1099-Misc.
Ask your vendors to complete the W-9 form with their name and tax ID as it appears on their tax returns to prevent name and tax ID matching issues when the 1099s are filed with the IRS.
A great way to organize completed W-9 forms is to file them alphabetically in a binder, so you’ll have them easily available at each year-end.
Remember form 1099s are due to the vendors by January 31st and due to the IRS (along with Form 1096) by either January 31st or February 28th. For more information check out www.irs.gov or contact me