1099′s will continue to be issued to vendors paid $600 or more in the previous year (the new section of the health law passed in 2010 was repealed so forms issued in 2012 will not have more stringent requirements and business owners will not be issuing a significantly greater number of 1099s). Make sure you have a W-9 on file with a legible number for every vendor you receive goods and/or services from – you’ll save time and frustration come the following January! If you haven’t done so already, make this the year you institute a policy that no vendor will be paid until you have a W-9 on file. Go through your existing vendors, too, to ensure you have accurate information. Has anything changed? Are they now a corporation? Did they close down a corporation and revert to a partnership or sole proprietorship? These things happen! If you have employees, keep up to date on correct addresses to avoid problems when W-2′s are issued each January. Have employees also confirm deductions are correct.
- IRS ends paper tax package mailing
- Extended 1099 Reporting Repealed