Now is the time to prepare and file the 2012 1099 forms. With all that comes at year end, this process needs to be as easy and un-burdensome as possible.
“I cannot find the ID number for that contractor we used last year and he is not returning my calls”. Well, if you paid $600 or more for service and the person or business to whom the check was written is not a corporation, you have a problem. To avoid possible heavy fines, you have to find that ID number and get these forms prepared and filed.
Don’t wait until the end of the year. Don’t wait to see if you reach the $600 level. Don’t take the burden of finding the information onto yourself or your company.
Require that all vendors you pay complete and provide you with a Form W-9 BEFORE you ever write them a check. They will be motivated to get you that form so they can get paid and you will then have the information you will eventually need. This will go a long way towards reducing the stress that can otherwise surround year end for your business. Remember: Be sure the name on the W-9 form is a match to the name that will be on the checks you write. You might even adopt a policy of obtaining these forms annually so that no one is missed. The form is free at http://www.irs.gov/pub/irs-pdf/fw9.pdf.