This article deals with verifying very basic items prior to filing a vendor 1099-NEC tax form.

As you know, each January is the 1099-NEC tax filing month, which can be a daunting task to complete during the entire month. You want to be sure to NOT rush this activity, but you do have a deadline at the end of the month (of January) to submit all 1099-NEC forms to your contractors and the IRS.

So, here are a few basic points to consider prior to submitting 1099 tax forms to your contractors and the IRS:

• Be sure all source funds accounts (banks, credit cards, Paypal, etc) are reconciled through the entire prior calendar year (through 12.31.xx).
• Consider which source funds accounts (such as credit cards) data you will be excluding from your 1099 filings. Typically credit cards payments do not get included on a 1099 form, but you need to verify to be sure here.
• Decide exactly on which vendors will get a 1099 tax form and which ones will not. You will need to closely review all vendors’ submitted W-9 forms to you and other factors (such as purposes and methods of payments) to ultimately determine this.
• Be sure to visit IRS websites to understand the latest 1099 filing requirements. Be sure to completely understand your 1099 filing obligations, which includes e-filing methods as well.

Note: AccuraBooks is a bookkeeping firm only, so please consult with your C.P.A. for verification and clarification about the contents of this article.