Prepping for Tax Time

Since the end of the year is quickly approaching, it’s time to start thinking about prepping for tax time. 1099-Misc forms must be supplied to all qualifying independent contractors and other vendors by January 31^st. So, this is a good time to review all of the payments you’ve made this year and make a list of the vendors who are eligible to receive a 1099-Misc.  Then, you should verify that you have a W-9 form on file for each eligible vendor and that it has been filled out completely. If not, contact the vendor and request that they complete the form as soon as possible. The latest version of the W-9 form can be found on irs.gov.  Next, put all of the W-9 information (vendor name, tax id, address, etc.) into a spreadsheet along with the payment amounts made to each vendor.  Whether you are a website company in Fort Collins or a contractor in New York, organizing the information this way now will make putting the 1099 forms together so much easier in January.