1099 Preparation
Preparing and filing 1099 forms for contractors and vendors so you stay compliant and avoid IRS penalties.
What This Is
If you paid a contractor or vendor $600 or more during the year, the IRS requires you to file a 1099 form reporting that payment. The form goes to the IRS and a copy goes to the person or company you paid. They need it to file their own taxes, and the IRS uses it to verify that income gets reported.
1099 preparation involves gathering payment records, verifying taxpayer identification numbers, preparing the forms accurately, and filing them by the January 31st deadline. Miss that deadline or file incorrect information and you’re looking at penalties that add up quickly.
What Gets Filed
What Gets Filed
1099-NEC forms for contractors who performed services for your business. 1099-MISC for rent payments, royalties, and other reportable amounts. Each form shows the recipient’s name, address, tax ID, and the total amount paid during the year.
What You Provide
What You Provide
A list of contractors and vendors you paid, along with their W-9 information and payment totals. If you don’t have W-9s on file, we help you track down the missing information before filing season arrives.
Why This Matters
The IRS takes 1099 filing seriously. Late filings trigger penalties starting at $60 per form and climbing to $310 or more depending on how late. Intentional disregard pushes that to $630 per form with no maximum. If you have 20 contractors and miss the deadline by a few months, you’re looking at thousands in penalties for what should have been a straightforward filing.
The other problem is incorrect information. Wrong Social Security numbers, transposed digits, or amounts that don’t match your records create issues for both you and the recipient. The IRS sends notices, contractors call asking why their 1099 is wrong, and you spend time fixing something that should have been done right the first time.
The January Scramble
The January Scramble
Every year, business owners realize in mid-January that 1099s are due at the end of the month. They don’t have W-9s for half their contractors. Payment records are scattered across bank statements and check stubs. What should take a few hours becomes a stressful week of chasing paperwork.
The Penalty Math
The Penalty Math
One late 1099 might cost $60. Ten late forms cost $600. File them 30 days late and the penalty increases. File them after August and it doubles again. For businesses with a lot of contractors, penalties can exceed the cost of having someone handle the filing correctly from the start.
What Changes
You hand over your contractor payment records and get back completed, accurate 1099s filed with the IRS and delivered to recipients before the deadline. No scrambling in January. No penalties for late filing. No calls from contractors about errors on their forms.
For businesses with a larger number of contractors, volume discounts bring the per-form cost down. Whether you have five contractors or fifty, the forms get prepared consistently and filed on time. You focus on running your business instead of navigating IRS filing requirements.
Accurate Filing
Accurate Filing
Payment amounts verified against your records. Taxpayer IDs checked before filing. Forms prepared correctly the first time so you don’t deal with correction notices or confused contractors calling in February asking about discrepancies.
Year-Round Support
Year-Round Support
If you need help collecting W-9s from contractors during the year or tracking payments by vendor, that groundwork makes 1099 season straightforward. Good records throughout the year mean accurate forms at the end of it.
New Jersey's Fractional CFO Firm
The Next Step:
Let's Talk About Your Business
Tell us about your business and what's on your plate. We'll listen, ask a few questions, and give you a clear picture of how we can help.