We are reminding you that Form 1099-MISC must be issued to individuals, some corporations, and other unincorporated entities to which you paid for services and contract work that meet certain criteria during the calendar year. Likewise, Forms 1099-INT and 1099-DIV must be issued to recipients of interest and dividend income, respectively. To verify your Form 1099 filing requirements see IRS: Am I Required to File a Form 1099 or Other Information Return? Forms 1099 must be received by the payee no later than January 31. Forms 1099 with Form 1096 must be filed on or before at the IRS by January 31. The IRS assesses steep penalties for each 1099 filed late, and the IRS penalties increase over time.
Before year-end is the critical time to verify that you have all the records in order to allow time to meet the deadlines and avoid steep IRS tax penalties. You need a Form W-9 signed and completed from each vendor and contractor to whom you may potentially need to send a Form 1099-MISC.
Your responsibility: Throughout the year before you pay a vendor or contractor the first time, request the recipient to complete the Form W-9 available on the IRS website. Click here for Form W-9. Keep the signed and completed W-9 in your records. As you receive W-9s during the year, enter and update all payees, amount paid, Social Security/Federal Employer Identification number, and current mailing address in the vendor records in your QuickBooks file.
To our clients for whom we prepare annual 1099s: Based on the data you have entered in your QuickBooks files, we will generate the 1099 forms and send them directly to the recipients’ addresses in QuickBooks and electronically file the returns with the IRS. In order for us to complete the reporting on time, all the data for the prior calendar year must be current in your QuickBooks file no later than January 15th.
Links for 1099 Filing Requirements Overview, Tips and Steps to Prepare and Report Forms 1099:
IRS: Am I Required to File a Form 1099 or Other Information Return?
IRS: Form W-9
How to Prepare a 1099 When You Employ Independent Contractors
Have You Misclassified your Worker as an Independent Contractor or Employee? Find Out Now and Make a Fix.
File 1099 Forms online
1099 E-File: QuickBooks Desktop setup, troubleshooting, & FAQs
Online 1099 electronic filing other than through Intuit