The weather is cooling down and the days are getting shorter. As we notice these changes each year, it is a reminder that the year is drawing to a close. Here at BBB, it’s our cue to begin preparing for the year-end and especially for filing 1099s. What is done in November can greatly reduce the stress in January. But what can be done?
Research the Rules
The IRS provides instructions each year for 1099 filings. Keeping abreast of the requirements is crucial not only for planning but also for avoiding penalties. Last year the deadline for filing with the IRS was moved up to January 31st for Form 1099-MISC if you were reporting nonemployee compensation in Box 7. Before this change, you would have had until the end of March to file with the IRS if filing electronically. Taking note of this change is important because penalties can be accessed of $50 per form for late filings. The importance of noting and following the instructions cannot be overstated.
Gather Vendor Information
In our experience, the gathering of information and verifying its accuracy is the piece of the puzzle that causes the most headaches. Best practice is to request a W-9 Form from each vendor before payments are issued. If you don’t have a Form W-9 for all of your vendors, now is the time to start requesting them. For the vendors that you have the needed information, we suggest reviewing and verifying that it is up-to-date. If you do this now, you will avoid a lot of stress in January.
With everything else that you have on your plate, preparing 1099s can be overwhelming. But have no fear! Help is here! We prepare 1099s for many of our clients. We would be happy to help you as well. Please let us know if you would like for us to assist you in preparing your 1099s for 2017.
This year will be over before we know it. Preparing now can be the key to a successful January.