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Your Ultimate Checklist For 1099 Forms For The Tax Year 2020-2021

Here’s a quick and easy-to-follow checklist to help you navigate through the tax season in 2021 for 1099 forms.

As business taxpayers say goodbye to a very harsh and turbulent 2020, they are welcoming 2021 with hope and positivity. And as 2021 fast approaches, business taxpayers are also preparing for the tax season which starts with the New Year. 

Since the due dates for all 1099 forms have been moved from 31st March to the 1st of February, businesses are gathering all the required information, documents, forms, and other important data required to file 1099 forms, including the recent addition, 1099-NEC.

If you’re new to business tax filing or need help with organizing your e-files or looking for a checklist to help you get started, your search ends here. 

We have put together the ultimate checklist that you need to file your 1099 forms for the tax year 2020-2021.

There is no better way to start the new year than to get taxes out of your way.  That way you have the rest of the year for yourself. 

Have a smooth and turbulent-free tax season with our checklist by your side.  

You can use this as a playbook when you’re filing your forms. What’s more? This checklist will help you understand if you have done everything necessary to comply with the IRS. Additionally, it gives you a good picture of what you need and how to get started.

So, without further ado, let’s get cracking on this checklist.

Checklist For 1099 Tax Forms: An Overview

We have added all the essential tasks that enable a hassle-free tax filing process. Further, if you are sure that the items don’t apply to your business, then you may remove any of the items in this checklist. 

Additionally, if you think that we may have missed anything important that applies to your business, you can add such tasks in order of the tax filing process. 

Essentially, this checklist is designed to streamline the elements involved in the tax filing process and make your job easy.

Note: We have also added small boxes () next to each of the tasks to help you check them off as soon as you finish the task.

Checklist For 1099 Tax Forms

  • Review Vendors List □
  • Send Form W-9 to vendors □
  • Collect & Review Form W-9 □
  • Conduct TIN Checks □
  • Fill Out Your 1099 Forms □ 
  • Review The Forms □
  • Send Copies of 1099 Forms to Your Contractors □
  • Schedule Your e-File □

Screenshot and print this checklist and pin it on your vision board or your work desk so that you will have the checklist with you when you are swamped with paperwork.

Useful Links

Send Form W-9  To Contractors/Vendors

Business taxpayers are often in such a rush to fill out the forms that they forget to send forms to their contractors or vendors to get the required information.

Be sure to send Form W-9 to all your vendors at least a week before you start filling out your forms. You don’t want to send this form to your vendor on the day you are filling out your forms. It would cause a lot of back and forth; disturb your work process, and result in other unpleasant situations, which end up delaying the process. 

When you send the forms with a timeframe, it allows your vendors enough time to provide the necessary information and send it back to you. If the information provided seems to be wrong, then such corrections can be made within this 1-week timeframe.

Collect & Review Form W-9

Once your vendors have finished filling out their W-9 forms, do collect the forms from each of your vendors respectively and review the information that they have provided. Make sure that the mandatory fields are not left blank. 

If any of the fields are left blank, make sure that you follow-up with your vendors to get the required information. 

Conduct TIN Checks 

Now, this is a step that no business taxpayer can afford to miss. TIN Matching is the most crucial step for taxpayers that want to avoid heavy penalties and B-notices from the IRS. 

Conduct a TIN Match to check if the Taxpayer Identification Number and the name combination match with the IRS records. 

You can conduct TIN Match here on Tax1099 securely. 

If you want to check less than 25 TINs, then you can do so with Interactive Sessions. It should not take you more than a few minutes to an hour to get the status of the TINs. 

If you want to check more than 25 TINs, then you must choose ‘Bulk Session’ and import all your vendor data, and submit the name/TIN combinations.

Note: The IRS takes up to 2 days to accept/reject Bulk TIN Matches. 

If the IRS rejects your TIN Match request, it means that your vendor has not provided the correct information. You must immediately follow-up with your vendor to get the right information.

If the IRS accepts your TIN Match request, it means that you are ready for the next steps of the tax filing process.

Fill Out Your 1099 Forms

The new 2020 tax year has brought about the inclusion of 1099-NEC. So, if you have paid more than $600 as nonemployee compensation to any of your vendors or contractors, you need to file 1099-NEC instead of 1099-MISC.

Other than 1099-NEC, if you have filed 1099-MISC forms, you need to check the boxes and fill out the corresponding amounts.

Refer to the Guide to 1099-MISC and Guide to 1099-NEC for more details on how to fill out these forms. 

Review the forms

Once you have filled out your forms, review them thoroughly to check for any mistakes or inconsistencies.

Errors can cause delays in processing or result in penalties, so this step is essential to ensure accuracy.

Send Copies of 1099 Forms to Your Contractors

You must send a copy of the 1099 form to your contractors/vendors by January 31.

This is a legal requirement and helps contractors with their own tax filings.

Schedule Your e-File

After completing the above steps, schedule your e-filing of 1099 forms with a trusted platform like Tax1099.

e-filing ensures timely submission and helps avoid penalties.

Paper Filing Tips

  • Order your forms well ahead of the due date.
  • File your forms at least a week before the deadline to avoid delays.
  • Ensure that you postmark the forms on or before the due date.
  • Do not fold the paper forms, as this can interfere with IRS scanning.
  • Use the correct IRS mailing address, which varies based on your location and whether you are enclosing a payment.

IRS Mailing Addresses for Paper Filing

  • With payment: Department of the Treasury, Internal Revenue Service, Kansas City, MO 64999
  • Without payment: Department of the Treasury, Internal Revenue Service Center, Kansas City, MO 64999

Final Notes

Ensure you comply with both federal and state filing requirements, as some states require separate filings.

For more details on state-specific requirements, check the state government websites or IRS state filing guidelines.