1099 Preparation | Financial Cents Templates

About this template

General 1099 preparation with firm tasks and client tasks

Work type: Tax

Location: United States

Client industry: Generic

Version: 1 (Latest)

This template includes

9 tasks
6 client tasks

	Team Tasks
	Identify 1099-Eligible Vendors	Bookkeeper
	Review the general ledger to identify payments made to vendors for services or rents totaling $600 or more over the year.
	Verify the type of entity (individual, LLC, corporation) and eligibility, as corporations are generally excluded unless providing medical/legal services.
	Review Transaction Data	Account manager
	Verify that all payments are accurately recorded under the correct vendor. Adjustments may be necessary if any payments were misclassified.
	Confirm Vendor Information with client - ensuring enough time for feedback before filing deadlines.	Account manager
	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.
	Have client request missing w-9's
	Create 1099 Drafts	Bookkeeper
	Generate draft 1099s based on recorded payments and vendor data. Include details such as:
	Total paid for the year.
	Federal income tax withheld, if any.
	Vendor information (TIN, address).
	Review the drafts internally for accuracy, double-checking vendor payment amounts and classifications.	Account manager
	Send drafts to the client for review	Account manager
	Make any necessary corrections based on client feedback to ensure data accuracy.	Account manager
	File 1099s with the IRS	Account manager
	File the final 1099 forms with the IRS by January 31 (for paper filing) or February 28 (for electronic filing).
	Distribute copies of 1099s to vendors by January 31.
	Keep copies of filed 1099s and supporting documentation, including W-9s and any communication related to 1099 preparation.	Account manager

Team Tasks

Identify 1099-Eligible Vendors

Bookkeeper

Review the general ledger to identify payments made to vendors for services or rents totaling $600 or more over the year.

Verify the type of entity (individual, LLC, corporation) and eligibility, as corporations are generally excluded unless providing medical/legal services.

Review Transaction Data

Account manager

Verify that all payments are accurately recorded under the correct vendor. Adjustments may be necessary if any payments were misclassified.

Confirm Vendor Information with client - ensuring enough time for feedback before filing deadlines.

Account manager

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.

Have client request missing w-9's

Create 1099 Drafts

Bookkeeper

Generate draft 1099s based on recorded payments and vendor data. Include details such as:

Total paid for the year.

Federal income tax withheld, if any.

Vendor information (TIN, address).

Review the drafts internally for accuracy, double-checking vendor payment amounts and classifications.

Account manager

Send drafts to the client for review

Account manager

Make any necessary corrections based on client feedback to ensure data accuracy.

Account manager

File 1099s with the IRS

Account manager

File the final 1099 forms with the IRS by January 31 (for paper filing) or February 28 (for electronic filing).

Distribute copies of 1099s to vendors by January 31.

Keep copies of filed 1099s and supporting documentation, including W-9s and any communication related to 1099 preparation.

Account manager

	Client Tasks - Preparation Client Tasks
	Review the list of 1099-eligible vendors provided by the firm and confirm all are accurately identified.
	For any vendors missing a W-9, reach out to collect the necessary information (name, TIN, address) as soon as possible.
	Review the payment amounts shown on draft 1099s, ensuring no personal or excluded expenses are included.

Client Tasks - Preparation Client Tasks

Review the list of 1099-eligible vendors provided by the firm and confirm all are accurately identified.

For any vendors missing a W-9, reach out to collect the necessary information (name, TIN, address) as soon as possible.

Review the payment amounts shown on draft 1099s, ensuring no personal or excluded expenses are included.

	Client Tasks - Final Review Client Tasks
	Carefully review the draft 1099 forms for any inaccuracies and provide feedback to the firm promptly.
	Once all corrections are made, confirm final approval for filing with the IRS and distribution to vendors.
	Be prepared to address any questions from vendors after 1099s are distributed.

Client Tasks - Final Review Client Tasks

Carefully review the draft 1099 forms for any inaccuracies and provide feedback to the firm promptly.

Once all corrections are made, confirm final approval for filing with the IRS and distribution to vendors.

Be prepared to address any questions from vendors after 1099s are distributed.