Tax 1099.com IRS forms 1099 MISC, Efile 1099 | IRS 1099 MISC Online | e-file 1099 misc | IRS Approved

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8 Things to Think About Before 1099 SeasonFrom
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 1. Have you collected all of your W-9s?

• If you are required to file an information
  return, such as a 1099-MISC, the IRS requires you
  to collect the Taxpayer Identification Number
  (TIN) for the person you paid. You then use the
  information collected on the W-9 to complete the
  information return filing requirement. The IRS
  provides a pdf of Form W-9 here, or you may use
  other tools to collect the W-9 from vendors and
  contractors. Electronic Collection of the W-9
  information is perfectly acceptable as well.

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2. Have you verified the TIN and name
combinations provided to you are correct?

• Its very easy to enter the information collected
  from the W-9 incorrectly into your accounting
  software. Sometimes vendors provide incorrect
  information, such as providing a doing business
  as name instead of their legal entity name.
  Other vendors do not want the income reported and
  provide incorrect information intentionally. You
  can help protect yourself or your clients by
  proactively verifying TIN and name combinations
  received on the W-9 form.

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 3. Have you noted that the vendor is a
1099-qualifying vendor in your software?

• Most software where you track vendor payments has
  a method for noting that the vendor should
  receive a 1099. In some software, that could be a
  checkbox on the vendor record. Others may have a
  way to note the default form and box number in
  the vendor record. Still others may track the
  payment itself to note if it is a 1099
  payment. Be sure to select the 1099 tracking
  option in your software.

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4. Do you know which box to report the vendor
amounts to?

• The most commonly-filed 1099 form is the
  1099-MISC. For the IRS, nine of the boxes can be
  used to report payments made to vendors. Those
  boxes include the usual box 7 for nonemployee
  compensation, but they also include others that
  are used less frequently, such as box 5 for
  fishing boat proceeds or box 13 for excess golden
  parachute payments.

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5. How will you get the information from your
software into your forms?

• Consider a tool that integrates with your
  accounting software to bring the data over. You
  click a few buttons and the Payer, vendor, and
  amount information populates the 1099 form for
  you. Make edits if needed, and then click a few
  more buttons to provide copies to recipients,
  e-file to the IRS and state agencies, and store
  the information in the cloud.

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6. How will you provide copies to the recipients?

• Traditionally, companies mailed paper copies of
  the 1099 forms to their vendors. Now, many people
  prefer to receive that information in an
  electronic format. The IRS allows Payers to send
  electronic copies to the vendor as long as the
  vendor has opted in to receive the information
  electronically. There are specific steps to
  accept that opt-in and to allow the recipient to
  revoke their opt-in covered in the IRS
  publication General Instructions for Certain
  Information Returns, p. 12.

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7. How will you deliver the filing information to
the IRS?

• If you file 250 or more 1099s under one EIN, you
  must file electronically. The IRS encourages all
  filers to e-file, though, and you can e-file as
  few as one 1099. One benefit to e-filing is that
  you have a later IRS filing deadline. While paper
  filers must file by February 28, e-filers can
  delay the e-file until March 31. You can even
  schedule the e-file date on Tax1099.com when you
  create the forms for your vendors.

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8. Who needs access to the forms once theyve
been filed?

• For small businesses, you may be the only person
  who needs to see the 1099 information. Larger
  companies and accounting firms, though, may need
  to have several users with access to the
  information. It can be handy to have a tool that
  allows you to create multiple users with
  different access rights in that situation.

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