Do You Have All Your W9s?

On December 22nd, 2011, posted in: Accounting by 0 Comment

In January business all across America will be preparing Form 1099s to send to their vendors. To know which vendors to send 1099s to, they need to have a Form W9 from them first. The IRS released a new updated version of Form W9 in December 2011. Click here to download it.  

Many business owners aren’t aware of all the rules relating to 1099s. Here’s a recap of things many people don’t know.

  • You are required to have a W9 on file for any vendor you have paid $600 or more to this year.
  • Rent is a 1099able expense. This includes not only renting your office space, but storage as well.
  • Legal expenses are always 1099able. They don’t have to meet the $600 threshold and are required even if the law firm is a corporation.
  • Being an LLC is a legal entity, not a tax entity. When LLC owners fill out a Form W9, they must tell how they file their taxes (corporation, S corporation, partnership, or disregarded entity).
  • Form 1099 should be sent to partnerships and disregarded entities, not corporations (unless they meet one of the other requirements).
  • The mailing deadline for recipients of Form 1099 is January 31st.
  • Penalties may apply for late mailing or not sending forms as required.
  • While Form 1099 Misc is the most frequently used 1099, there are an additional 16 versions of Form 1099 that businesses may be required to send.

If you’re unsure about who to get a W9 from or how to process 1099s, check out the instructions at the IRS website.

If you’d like help processing your 1099s, give us a call at 480.219.4285.

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