2009 1099/1096 Preparation:
Who Receives 1099’s? In general, any vendor or contractor , that is NOT a Corporation, that has been paid over $600.00 in 2009. The recipients use them to report their federal and state taxes. A common exception is that attorneys receive a 1099 for all amounts. Please feel free to read the IRS Guidelines for more specific information.
Due Dates:
January 31, 2010: 1099's mailed to recipient
February 28, 2010: 1096 and copies of individual 1099’s sent to IRS.
Step One: Make sure the Preferences are turned on in QuickBooks
Edit/ Preferences to reach this Menu.
Step Two: Review the vendor list in QuickBooks.
1. Make sure that every contractor, lawyer, company (that is NOT a Corporation) has a Federal ID or Social Security Number Entered.
2. In QuickBooks, that is Vendor Center/Click on the Vendor name on the list/Additional Info. Please click the box “Vendor Eligible for 1099”, if they are supposed to receive 1099. Enter the Tax ID in the appropriate box.
3. How do you ask for the Vendor’s Tax ID Number? Use a W-9 to formally request the information. I’m including a copy of the W-9 Form with this letter. This is the version downloaded from the www.irs.gov website. The forms can be mailed or faxed. If the vendor has a form that give to their customers, that is also quite fine.
Step 3: Printing the Tax Forms
Then QuickBooks will give you the option to run the 1099/1096 reports. Vendors/Print 1099’s/1096’s
Here is the “Wizard” that shows up:
1. “Run Report” Review it for accuracy.
2. “Map Accounts”. Generally, there doesn’t need to be any changes in this screen.
3. “Run Report” Review for accuracy
4. “Print 1099s” The most expensive option is to use the preprinted forms from QuickBooks. They even provide a link to their website on this option. HOWEVER: Two less expensive options:
5. The IRS provides FREE tax forms. One can use an ancient device, such as a typewriter, to fill out the forms.
6. Office Depot/Max/Staples etc. have printable forms for a third of the price as what QuickBooks offers. However, the forms are generally not compatible with QuickBooks. You will need to reenter information into the provided software to print the tax form from a printer.
Mail only the Federal and State Copy to the recipients by the January deadline. This will give the recipients time to contact you if they feel the information is incorrect. At the end of February, print the 1096 (a summary of all the 1099’s) and the IRS copy of the 1099’s. PLEASE REMEMBER TO KEEP A COPY for yourself. This is required by the IRS and can be audited by them.
Please keep in mind that these instructions are intended as general advice/suggestions. If there is specific tax advice or a unique situation, please contact Laura Dodson. There is further information available at www.irs.gov .
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