It’s hard to believe that year-end reporting for employees and independent contractors is right around the corner. Taking the time NOW to review your files is a great way to set yourself up for an easy reporting season in January. We recommend that a W-9 is requested as part of all vendor contracts and before the first check is cut to a vendor.
How to Handle Your 1099 Reporting
The IRS is becoming increasingly strict on 1099 reporting rules. Penalties can be up to $260 per 1099 if you:- Don’t file correct information return by the due date and a reasonable cause is not shown
- File on paper when you were required to file electronically
- Fail to report a Taxpayer Identification Number
- Report an incorrect Taxpayer Identification Number
- Fail to file paper forms that are machine readable
- Fail to provide a payee statement by the due date
- Don’t provide required information on the statement
- Incorrect information is shown on the statement
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