About this template
Work type: Tax
Location: United States
Client industry: Generic
This template includes
- 9 tasks
- 6 client tasks
1099 Preparation
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| Team Tasks | ||
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| Identify 1099-Eligible Vendors |
Bookkeeper
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| Review the general ledger to identify payments made to vendors for services or rents totaling $600 or more over the year. |
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| Verify the type of entity (individual, LLC, corporation) and eligibility, as corporations are generally excluded unless providing medical/legal services. |
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| Review Transaction Data |
Account manager
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| Verify that all payments are accurately recorded under the correct vendor. Adjustments may be necessary if any payments were misclassified. |
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| Confirm Vendor Information with client - ensuring enough time for feedback before filing deadlines. |
Account manager
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| Send list to client: Ensure each vendor’s information is complete (name, address, tax ID) by cross-referencing prior year’s data or W-9s received. |
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| Have client request missing w-9's |
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| Create 1099 Drafts |
Bookkeeper
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| Generate draft 1099s based on recorded payments and vendor data. Include details such as: |
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| Total paid for the year. |
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| Federal income tax withheld, if any. |
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| Vendor information (TIN, address). |
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| Review the drafts internally for accuracy, double-checking vendor payment amounts and classifications. |
Account manager
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| Send drafts to the client for review |
Account manager
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| Make any necessary corrections based on client feedback to ensure data accuracy. |
Account manager
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| File 1099s with the IRS |
Account manager
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| File the final 1099 forms with the IRS by January 31 (for paper filing) or February 28 (for electronic filing). |
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| Distribute copies of 1099s to vendors by January 31. |
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| Keep copies of filed 1099s and supporting documentation, including W-9s and any communication related to 1099 preparation. |
Account manager
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| Client Tasks - Preparation Client Tasks | ||
|---|---|---|
| Review the list of 1099-eligible vendors provided by the firm and confirm all are accurately identified. |
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| For any vendors missing a W-9, reach out to collect the necessary information (name, TIN, address) as soon as possible. |
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| Review the payment amounts shown on draft 1099s, ensuring no personal or excluded expenses are included. |
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| Client Tasks - Final Review Client Tasks | ||
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| Carefully review the draft 1099 forms for any inaccuracies and provide feedback to the firm promptly. |
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| Once all corrections are made, confirm final approval for filing with the IRS and distribution to vendors. |
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| Be prepared to address any questions from vendors after 1099s are distributed. |
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