4 Steps to 1099 - Deadline January 31, 2015

[Gita Faust]

Time to file your 1099 forms but not to everyone you pay. So start cleaning up your books and excel file to identify whom you have to issue the form.

First you should have a w-9 form filled out by anyone whom you are going to pay over $600. You should have the w-9 form filled here is the link www.irs.gov/pub/irs-pdf/fw9.pdf

Second track all money paid out by name and dates

Here is a start on putting the puzzle pieces together before issuing the 1099 forms:

1 -- Send 1099 to anyone who is paid more than $600 for 2014

2 -- Do not send 1099 if the payee is incorporated. Identify the vendors by their business name. If it ends with inc then they should be incorporated.

3 -- Lawyers must be issued 1099

4 -- Financiers must be issued 1099 for interest paid on private loans over $10 (not mortgages or line of credit)

If you are using QuickBooks, you can easily identify which vendors need to be issued 1099s.