One Simple Way To Make 1099 Form Preparation a Breeze.
Request W-9 Forms
By having current W-9 forms on file for the businesses and individuals you will be paying, you will be able to quickly identify who you may need to receive a 1099 form. Current W-9 forms will also ensure you have current address information for mailing the 1099 forms.
When is the best time to request a W-9 Form?
It’s much easier to have a vendor fill out a W-9 form as a pre-requisite to receiving the first payment, than at the end of the year.
Before your business or farm operation makes payments for contract labor, professional services or rent, make sure you have a current W-9 form on file. If you do not have a W-9 on file, it is a best practice to require the business or individual you are paying to provide a copy of a filled out W-9 form.
What is a W-9 form?
The W-9 form is a “Request for Taxpayer Identification Number and Certification”
If the businesses or individuals you need to pay do not already have a pre-filled out W-9 Form, they can download a copy to fill out from the IRS website: https://www.irs.gov/pub/irs-pdf/fw9.pdf
What information is required on the W-9 form:
- Name of business or individual
- Federal tax classification (Individual, sole proprietor, corporation, LLC, etc)
- Address
- Tax Identification number
- For individuals this is a Social Security Number or ITIN number
- For businesses this is their federal identification number also referred to as an EIN
- Signature and date
If you have questions about W-9’s, always consult your tax advisor.
[…] a business is registered as a corporation, ask the vendor to fill out a W-9 form – refer to our blog post from February 2024 if you have questions about the W-9 […]