What To Do If You Missed This Year’s 1099 Deadline
In our last post we talked about the benefits of hiring freelancers for small businesses. If you’ve already been hiring contract work, though, you might be familiar with the process of filing 1099s. And if you’re only familiar with this process because you just learned you’ve missed your deadline to file them, this post is for you.
First of all, don’t panic. If you missed the January 31st deadline, you can still get them done. When it comes to matters of the IRS, it’s definitely better late than never.
We’ve written up a brief, step-by-step guide to getting this paperwork done, but if you really want to play it safe, or if you think your company or one of your vendors might be in a special situation, you should probably start with the official IRS instructions. Here’s our quick how-to:
- Go through your vendor list and find all vendors you paid $600 or more to during 2019.
- Narrow down this list to all of the vendors which you paid for services, not products or goods.
- Now narrow down the list even further to vendors who you know are sole proprietors, partnerships (including LLCs), attorneys, or law firms. Corporations don’t get 1099s, so you won’t need to file for any vendor ending in “Inc.”, “Incorporated”, or “Corporation”.
- The remaining list of vendors are the ones you need to file a 1099 for.
Once you have this list, you need to make sure you have all of the necessary information in order to send the 1099s to your vendors. This includes:
- Vendor name
- Tax identification number. This could either be their social security number (SSN), individual taxpayer identification number (ITIN), or if the vendor is a business, their employer identification number (EIN).
- The total amount you paid this vendor during 2019.
Now you can get filing.
If you want to catch up even quicker, it might be a good idea to file your 1099s online this month. There are more than a few websites you can choose from to do this, which you can find with a simple Google search. E-filing your 1099s will help you to circumvent the work of printing and filling out each form by hand, shoving them into envelopes, and sending them by mail. The cost of filing 1099s online can vary, depending on your volume and whether or not you need the filing service to send out paper forms as well, but it might be more than worth the cost, especially when you’re in a pinch.
We wish you the best of luck in getting your paperwork back on track. You can do it! Unfortunately, our talented staff at Chastain Partners is not available for emergency accounting services in a situation like a missed deadline, but we pride ourselves on our commitment to the small, diligent details of bookkeeping year-round. Ask for a consultation today, and we can make sure your next tax season will be stress-free.