W-9

 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.

The problem:

“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.

Solution:

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.

Method:

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.