Plan Now for 1099’s

It’s never too early to assemble data for 1099 reportable transactions -- to minimize effort at year end, eliminate the necessity of filing corrected 1099’s and eliminate B notices and penalties.

For each payee, ask yourself the following:

• Do you know if a 1099 is required? Some payments to corporations require 1099s.

• Will the IRS consider the reported payee name and taxpayer id to be correct?

• Do you need a W8 or W9 on file? Should you be withholding?

• Are you classifying payments correctly? Not everything should be reported as non-employee compensation.

• If the payee gave you credits or refunds, are they reflected in the 1099 amount?

• Does the amount to be reported reconcile with the payment history for the payee?

If you need more information or want to facilitate 1099 reporting, please contact RECAP.