There are a couple items that we as business owners need to know regarding W9 and 1099 forms.
1. Obtain a W9 from all vendors who are providing services for your company. If there is already one on file, make sure to have the correct, updated address. Make sure the company’s legal name is listed, not the DBA (Doing Business As). If only the DBA is listed, it will be rejected by the IRS for not matching their records.
2. If both the legal name and the DBA is listed on the 1099, make sure the legal name is entered into your system and not the DBA.
3. The threshold for issuing a 1099 is $600 a year, meaning that you don’t need to issue a 1099 to those who were paid less than $600 per year. Also, you don’t need to issue a 1099 to corporations.
4. A 1099 MISC must be issued for rent, this is something that is missed very often. This can be filed manually or electronically.