The Drudgeries of Tax Form 1099
Pam Saul, Owner of Farm & Equine Business Services
Here we are headed into the fresh new beginnings of a new year. But we’re stuck having to track down all of our vendors, and figure out which ones need to get a tax form 1099. Why oh why do we have to do this?!?
Here are a few tips to set you up for success as you go forward…
· Any time you add a new vendor, get a W-9 filled out. It’s an easy form to send to vendors and gives you all the information you need to know.
· If you travel and meet vendors in different places, print a few forms and take them with you. Have the form filled out before you write the check … you can simply say, “I need this form before I can write the check.” You’d be surprised how fast it will get done!
· When you record the vendor name in your books, make sure to include their status. If they are incorporated, make sure you put “Inc.” in the name. This is your reminder that they don’t get a 1099 tax form. If they are a limited liability corporation, make sure you put LLC in their name. This is your cue that they definitely get the form.
For this year, here are some steps you can take to get your forms completed if you have QuickBooks:
· Run a report called, “Transaction Report by Vendor” and use 2021 for the date range
· Use the list to pull out vendors you think, or know, get it
· Write those down in order, then close the report
· Go into your Vendor Center and check if you have their address and FEIN (Tax #)
· Write on the list who has missing information
· Contact those vendors and get the missing information
· Enter new information for the vendor into your file
· Run the 1099 Wizard and follow the instructions
· Print the 1099’s from QuickBooks using tax forms you can purchase at Staples
This is a very general list of instructions and you may be able to do things a bit different. For example, Intuit allows you to send your 1099 forms through E-file, which has a cost.
If you are a procrastinator, this is one chore you don’t want to wait on. The deadline is January 31, and the penalty can get hefty.
So, go ahead and start the new year with some new steps to succeed in filing your 1099’s and next year at this time, you’ll be in a much better mood because you’ve set yourself up for success.
Need help with your 1099’s? Farm & Equine Business Services can help you in a variety of ways. Whether you simply need help getting your vendor list finalized, or you want to hand over the reins entirely, we’re here to help! Simply contact us at firstname.lastname@example.org to set up a free consultation.
DISCLAIMER: This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. You should consult your own tax, legal and accounting advisors before engaging in any transaction.