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W-9 and 1099 Tax Forms

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Happy Friday everyone!

 

I would like to hear about your experiences with handling W-9 and 1099 tax forms. Here are a few specific questions I have for you:

 

1) Do you send a W-9 form to every new client before you begin work, or do you wait until they have paid you $600 in fees?

 

2) Do you ever have to explain the W-9/1099 process to new clients if they have never used a contractor in the past?

 

3) Is the client's accountant typically responsible for submitting 1099 forms to the government?

 

4) Have your clients ever neglected to send in a 1099 form for your work? If so, how did you handle this?

 

I'm trying to figure out a way to streamline this process for new clients. I'm sure my questions won't cover everything I need to know, so please elaborate as you see fit!

 

Thanks for your assistance!

Angela

 

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I mail them to my clients in November, just makes my life easier.

 

I do the 1099s for my clients (I'm the bookkeeper). Yes, the bookkeeper/accountant should do them, but that doesn't always happen. You are still responsible for reporting all of your income to the IRS.

 

Yes, some clients don't know what a 1099 is. I explain it. If I'm the only 1099 contractor, I make one for myself and file the red form for them at no cost. Yes, I know, but trust me, it's just easier sometimes than going through the "now, this is what this" for the 20th time.

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Thanks so much for your reply, Candy! It's helpful to know that I can wait until close to the end of the year to send out W-9's. I noticed that the 1099 has to be ordered from the IRS since it's a triplicate form. Maybe I'll order several and mail them out along with the W-9's to eliminate one step for the client.

 

I need to become more familiar with the 1099 form so I can explain it to clients. I skimmed the form and instructions, and it didn't look all that difficult, at least not for my purposes. Are there any tricky parts I need to know about? Also, can the information be handwritten, or does it need to be typed? (Who actually owns a typewriter anymore?) :P

 

Does anyone else have a different process that they use to deal with these tax forms?

 

Thanks again!

Angela

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You can also get the 1099 forms from Office Depot or pick them up from your local IRS office... I would suggest not filling them out for the client because they SHOULD do that themselves or have a bookkeeper/CPA that does. The 1099s are filed with a cover (transmittal/summary) page 1096. I only send the W9 and then if they need someone to do their 1099s, I do those separately. Yes, they can be handwritten, but they must be on the original red form.

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Candy,

Thanks for the helpful tip about Office Depot. That will certainly come in handy if I need to get tax forms quickly. I just ordered the forms from the IRS online (for free) and they should arrive in 7-15 days. If it is possible to order an item online, that's the way I buy it...I used to order groceries online for goodness sake!

 

Here's the link where you can order the 1099 forms if anyone else is interested: http://www.irs.gov/businesses/page/0,,id=23108,00.html

 

I wasn't planning on filling out the 1099 form for the client - I just thought it might be helpful if I send them a blank 1099 form so they don't have to go to the trouble of picking one up.

 

Your expertise is always greatly appreciated!

 

Angela

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Yes I send W-9 form to every new client. And I explain 1099 Form to every new client. You should send a 1099 to every contractor–this means individuals or unincorporated businesses such as LLCS–to whom you paid $600 or more for services, rent, awards, or other miscellaneous business-related activities during the year. You can get some useful info from here. https://zipbooks.com/blog/1099-form-complete-guide-filing/

Oh forget to mention, only one time I had trouble making one of my client about this form and after sending him the papers he agreed.

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Hi.  I am actually filing 1099’s for the first time for a booster club.  They pay the same techs during the year to provide lessons to kids.

They get a W-9 signed for all techs for the school year and keep track of the end of year sum.  

Since I am trying to start as a VA, I plan on sending my W-9 at the beginning and will track it myself.  

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