- Do – Get a W-9 from each independent contractor/service provider when you start a working relationship with them. It saves time and effort down the road, and you won’t have to track them down last minute.
- Do – Report payments made to individuals, partnerships, and estates.
- Do – Send 1099s to all contractors/service providers and lawyers to whom you made payments to over $600 throughout the year. While the copies are due to recipients by the end of January, they are not due to the IRS until the end of February.
- Do – Ask your accountant if you have any questions on filing requirements.
- Don’t – Report payments to corporations unless specifically reportable in the 1099-MISC instructions.
- Don’t – Report personal payments. Only payments made in your course of business should be reported.
- Don’t – Wait until the last minute! It saves time, stress and money to get them completed early!