Do I need to send 1099s?
1. Considered “goods” and not reportable: Payments for merchandise, telephone, freight, storage, and similar items.
2. Credit Card payments are reported by merchant services provider on Form 1099-K.
3. Entities treated as corporations for tax purposes do not need to receive 1099s.
4. Corporations paid for attorney fees or health care services are not exempt from 1099 filings.
When you hire a new vendor, request that they send you a copy of their W-9. It has the information needed to prepare 1099s. If a vendor will not send their W-9, you may be required by the IRS to withhold 28% of payments to the vendors.
<<< Click to download W-9 form.
1099s may be generated using your accounting system (QuickBooks Online, etc) or an online service (tax1099.com, 1099online.com, etc), or hand written.
<<< Click to download 1099 form.
4/20/2023 04:52:28 pm
It is always a good idea to confirm early whether you need to send 1099s. You don't want to find yourself caught in the eleventh hour and unprepared. Getting 1099 software is a solution that worked for my business: https://1099-etc.com/payroll-software/w2-and-1099-forms-filer/. I never find myself needing to run out at the last minute to buy a fresh batch of forms.
Leave a Reply.
Lauren Gann, CPA
Proving resources for your accounting questions