Require a W-9!!
If you operate a business, under new IRS rules beginning in 2012 you will be required to disclose on your tax return whether you filed all required 1099’s. Many of you have done an excellent job of filing these each year as necessary. But the IRS is on the lookout for businesses out of compliance with this rule. BEFORE you make any payments to a contractor, landlord, etc. get a W-9 from your payee. This form will tell you if they will need to be issued a 1099 at the end of the year and will ensure that you have the information you need to prepare it including their legal name and tax identification number. If you wait until next January when the forms are due it will be very difficult to track down this information, making you out of compliance, not the contractor.
Make this one of your resolutions for 2012!!
If you have any questions, please contact our office.