Our Process For Preparing 1099s
As a business owner, it is your responsibility to file Form 1099’s for payments made to your vendors. Walton CPA PC can prepare your Form 1099's for you. This article discusses our process for 1099 preparation.
When Are Forms 1099 Required To Be Filed With The IRS & Delivered To Recipients?
Forms 1099-NEC are required to be delivered to the recipient and filed with the IRS no later than January 31st.
Our 1099 Process
Our process for preparing your Form 1099’s is as follows:
Initial 1099 Vendor List (Nov-Dec)
Between November 1 st and December 1st, Walton CPA PC will upload vendor information lists and a preliminary list of 1099 Recipients. Please review the list and identify any changes that may be required.
If changes are required,
- Please indicate the changes on the 1099 Vendor Information Report. The ONLY way to make changes is to indicate it on the report. Do NOT send corrections via email.
- Do not send us Forms W-9 unless we request them.
- If you do not wish us to send a Form 1099, please indicate that on the list.
- If a vendor is on the list that you no longer do business with and you want them removed from future lists, please write “Inactive” next to their name on the report.
All changes should be provided to us by December 15th.
Preliminary 1099 Reports Issued-1st Week Of January
During the first week of January, Walton CPA PC will upload preliminary 1099 Reports to Client Portal. Please review this report and provide any necessary corrections to us no later than January 13th. If we do not hear from you, we will assume that no changes are required.
Please note that we will not automatically process 1099’s for you if your accounting records are incomplete. Your accounting records will be considered incomplete if we have not received your bank statements by January 7th. If we do not have your bank statements but you wish us to prepare 1099’s, you will have to provide us with a list of the vendors and amounts to report.
Preparation of Form 1099's
In preparing your 1099’s, we use the following guidelines:
- If a vendor is missing the address and you indicated that we are to file a Form 1099 for them, we will use your address.
- If a client is missing a SSN# or the number is invalid, we will not be able to file a Form 1099.
- If you did not provide us with any information for a vendor by the December 15th deadline, we did not set them up to receive a 1099.
Filing & Delivered To Recipients
How 1099's are delivered to your vendors:
Email. If we have an email on file for your vendor, their 1099 will be emailed to them. Your vendor will be asked to verify information reported on the 1099 such as the last 4 numbers of the tax identification number and business name. If they do not provide the correct information, they will not be able to access the 1099 via email.
US Mail. For all other vendors, their 1099 will be mailed to the address on record. If we did not have an address for them, it will be mailed to the business address no later than January 31st.
1099 Processing Fees
The preparation of 1099's of up to ten 1099 recipients is included in all monthly bookkeeping engagements. However, there are circumstances when we may charge additional fees.
- Volume of 1099 Recipients. The number of 1099 recipients requiring a Form 1099 exceed ten.
- Rush Processing Fees. The information was provided to us after our reporting deadlines
- Amended 1099's Required. If amendments are required after the initial processing, additional fees will apply.
- Late Filing Of 1099's. Additional fees will be assessed for any and all 1099 changes required after January 31st.
All fees will be automatically ACH drafted.