You’ve been waiting all year, and now it’s right around the corner: 1099 filing season!
We know that 1099 filing season isn’t actually most people’s idea of a fun time. We want to give you a hand in the filing process. Here are 4 things to consider as you go into the season.
1. Have you collected your vendor’s W-9 forms?
A W-9 lists the vendor name and TIN. You will file the Taxpayer Identification Number and vendor name on a 1099 form. The IRS provides PDF’s of the form. You can also use Tax1099.com to e-solicit a vendor’s W-9.
2. Have you verified the vendor-TIN combination?
Entering W-9 information incorrectly on a 1099 is easier than you might think. The filing can also go wrong if a vendor provides incorrect information. Some vendors provide a “doing business as” name instead of their legal entity name. Other vendors provide incorrect information in an attempt to avoid taxes. Protect yourself against an incorrect filing by requesting a TIN match. Tax1099.com offers this service.
3. Do you know which form to file? Which box should you use?
Many of our users file the 1099-MISC form. On the 1099-MISC, non-employee compensation should be reported in box 7. If you are unsure about what form to file, consult your tax professional. This will ensure the most accurate reporting for your vendors.
4. Who needs to be involved in the filing process?
For small businesses, you may be the only person who needs to see the 1099 information. Larger companies and accounting firms, might need a multi-user account. Tax1099.com allows you to create many users under a parent account.
Tax1099.com also offers rights management options. You may want a certain user to enter data, and another to review the forms. You can set up users to have access to certain tasks in Tax1099.com. You can set that person up to do both of those, and then notify another user to e-file the correction to the IRS. You can even distinguish which clients each user has access to.
It’s never too early to start thinking about 1099 season. It always seems to come up suddenly. As you work with your vendors, keep these items in mind to ensure the final filing push is successful.