1099 Filing Deadline Approaching: Time to Collect Signed W-9 FormsDecember 08, 2014
Act now to avoid being victim to late penalties.
As we begin a new year, it is once again the time to send Forms 1099 to your independent contractors and any other vendors who have provided services to your company or organization. Please keep in mind the following IRS requirements when considering who to send these forms to:
- Made payments of $600 or more during the year for services rendered
- They are independent contractors and vendors who are not incorporated
- Recipient copies must be postmarked no later than the last day of January, 2015
- Attorneys receive these forms for services performed or for gross proceeds paid on claims, whether they are incorporated or not.
Information that should be gathered includes:
- Independent Contractor or Vendor Name (same as provided on their W9 form)
- Mailing address of Independent Contractor or Vendor
- Social Security Number if above is an Individual Name
- Employer Identification Number (EIN) if above is an Entity Name
- Total Amount Paid during the year
- Name and Telephone Number of Person in Your Organization that IRS should contact if they need more information.
Consequences for not obtaining a signed completed W-9 and filing Forms 1099 as required, could include, but are not limited to, loss of deductions, payment of back-up withholdings that should have been withheld on payments, and penalties for each Form 1099 not filed.
Therefore, we highly recommend that you obtain a completed and signed W9 form from all your service providers to facilitate in preparing the necessary 1099’s. If you have any questions regarding Forms 1099, these instructions or would like KLR to help you prepare your forms, please contact any member of the KLR Tax Services Group.