Form 1099 Reporting Requirements
Identify the Form 1099 recipients.
Obtain Form W-9
In order to obtain accurate information, the IRS developed Form W-9. This form is to be completed by the vendor and returned to you before you make any payments to that vendor. You will need to obtain a Form W-9 from all new vendors and from repeat vendors that have moved or changed their business entity type or Taxpayer Identification Number (TIN). If a vendor fails to return a completed Form W-9, you are required to withhold 28% of your payment(s). This “backup withholding” is required to be remitted to the IRS. Form W-9 can be obtained from the IRS (http://www.irs.gov/pub/irs-pdf/fw9.pdf)