Tax Reporting Questions For 2008

It's that time of the year again!  I have received numerous emails asking about 1099's.  The majority of the questions are the same so I am going to cover very basic information from the emails I have received.

Question:  Do I have to have every vendor fill out a W-9 every year?  Answer:  No, have your vendor fill out one W-9 and keep it on file.

Question:  If someone provides a service, what do I do? Answer:  Send anyone who provides a service, whom you paid over $600 in the calendar year a 1099, and ALL attorneys regardless of the amount of money paid.  Exception:  Incorporated companies do not need to receive a 1099.

Question:  Where can I find the 1099 forms and are there free ones?  Answer:  The following is a link to an "information only" copy of a 1099-MISC. You must order forms from the IRS because there are forms in red and duplicate copies.  www.irs.gov is very informative for answering questions.  Here is the W-9 form link.

While we are on the subject of IRS forms, you DO need to have employees fill out a W-4 every time their personal finances change, i.e. exemptions, name, status, address, etc.  You canNOT change exemption information for payroll without this form being completed by the employee.

If you have any other questions regarding forms or basic information, send me an email and I will be happy to look into it.