1099 Preparation
Preparing and filing 1099 forms for contractors and vendors. We gather the information, verify the details, and file on time so you avoid penalties and stay compliant.
What This Covers
If you paid contractors, freelancers, or certain vendors $600 or more during the year, the IRS expects you to report those payments on a 1099 form. We handle the full process. That means gathering the necessary information from each payee, verifying names and tax ID numbers, preparing the forms, and filing them with the IRS and the state of California by the deadline.
This is not something you want to figure out in a rush during January. Missing the deadline or filing with incorrect information leads to penalties that add up fast. We start the process early, collect what we need, and make sure every form is accurate before it goes out.
W-9 Collection and Verification
W-9 Collection and Verification
Every 1099 starts with a W-9. We help you collect W-9 forms from your contractors and vendors, verify that the names and taxpayer identification numbers match, and flag anything that looks incomplete or inconsistent before it becomes a problem at filing time.
Filing and Distribution
Filing and Distribution
We prepare each 1099-NEC or 1099-MISC based on your payment records, file with the IRS and the California Franchise Tax Board, and make sure copies go out to your contractors by the January 31 deadline. You get confirmation that everything was submitted correctly.
Where Things Go Wrong
The most common issue is waiting too long. You realize in late January that you need to file 1099s and you don’t have W-9s on file for half your contractors. Now you are chasing people down for their tax information while the deadline is days away. Some of them don’t respond. You file late or file with missing information and the penalties start stacking.
The other problem is inaccurate records. If your bookkeeping isn’t clean, you might not even know who you paid $600 or more during the year. You miss a contractor who should have received a form. Or you report the wrong amount because payments were categorized inconsistently throughout the year. These are the kinds of mistakes that create headaches down the road for both you and your contractors.
IRS Penalties
IRS Penalties
Late filing penalties range from $60 to $310 per form depending on how late you are. If the IRS decides you intentionally disregarded the requirement, the minimum jumps to $630 per form. For a business with five or ten contractors, that adds up to real money for something that was completely avoidable.
Missing Information
Missing Information
You can’t file a 1099 without a valid taxpayer ID number. If you didn’t collect a W-9 when you first hired a contractor, getting that information months later is a challenge. People change emails, switch phone numbers, or simply don’t respond. The earlier this information is gathered, the smoother January goes.
What You Get
You get the peace of mind that comes from knowing your 1099s are handled correctly and on time. No last-minute scramble. No guessing about who needs a form or what amount to report. We work from your books, verify the details, and take care of the filing so you can focus on running your business instead of dealing with tax paperwork in January.
If you are also a full-service bookkeeping client, this process is even smoother because your records are already organized and up to date. We already know who your contractors are and what they were paid. But even if you are coming to us just for 1099 preparation, we will work with whatever records you have and get everything sorted.
Clean Compliance
Clean Compliance
Every form is prepared accurately, filed on time with the IRS and the state, and delivered to your contractors. You meet your obligations without the stress. If the IRS or a contractor ever has a question, you have proper documentation to back everything up.
A Better Process for Next Year
A Better Process for Next Year
Beyond just filing the forms, we help you put a simple system in place for collecting W-9s from new contractors going forward. That way next January is easy from the start instead of a scramble. Good habits now save you time and money every year after.
Long Beach's Trusted Bookkeeping Partner
The Next Step:
A Quick Discovery Call
Tell us where things stand with your books. We'll listen, ask a few questions, and give you a clear quote to get it handled.
