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Do I need to send 1099s?

11/26/2018

5 Comments

 
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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. 

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New vendor
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.

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1099s
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.

5 Comments
Jim S.
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.

Reply
Business Owner link
7/24/2024 07:02:34 pm

Agreed. I've found myself unprepared before and won't ever let it get to that point again. Software really does help. We use a program that lets us enter "live" or after-the-fact payroll throughout the year by check. We are so much more organized now.

Reply
Crystal S.
2/22/2024 08:07:47 pm

Don't wait until the last minute to figure out where you stand with filing 1099s. I recommend equipping yourself with trustworthy software: https://1099-etc.com/payroll-software/w2-and-1099-forms-filer/. Good tax software often provides W-2 and 1099 reports for users. What you don't use this tax season can come in handy next year.

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Tommy S link
10/3/2024 01:28:11 pm

Great blog yyou have here

Reply
Business Owner link
6/28/2025 02:49:56 am

Excellent diagram. We've never missed a deadline or misplaced a form since getting 1099 software. That is enough of a selling point for me.

Reply



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    Lauren Gann, CPA

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