Since 1099-Misc forms are due to vendors by the 31st of January, now’s a great time to remind ourselves why we should have vendors fill out W-9 forms before we pay them. A completed W-9 form gives you all the information you need (tax classification, tax ID, etc.) to complete the 1099 form properly. If you ask for the W-9 before you pay, the vendor will be motivated to complete and return it quickly. If you wait until the end of the year, or worse, the first part of January, you will spend a considerable amount of time (and energy) tracking down vendors to get the forms completed. So, taking the time to modify your payment process to require W-9 forms up-front will be well worth it when preparing 1099 forms becomes so simple.
