1099 Preparation

Get your 1099 forms prepared and filed correctly for every contractor and vendor, on time and without the headache.

What This Is

If you paid contractors, freelancers, or certain vendors $600 or more during the year, you’re required to report those payments to the IRS using 1099 forms. It sounds straightforward, but there’s more to it than filling in names and dollar amounts. You need correct taxpayer identification numbers, the right form type, accurate payment totals, and everything filed by the deadline.

We handle the entire process from gathering the information to filing the forms with the IRS and delivering copies to your recipients. The base price covers up to five 1099 forms, and each additional form is $30. Whether you have a handful of contractors or a longer list of vendors, everything gets prepared accurately and submitted on time.

The Preparation Work

Collect and verify W-9 information for each contractor or vendor. Confirm taxpayer identification numbers match IRS records. Calculate total payments for the reporting year. Prepare the correct 1099 form type for each recipient based on the nature of the payments.

Filing and Distribution

File completed forms electronically with the IRS before the deadline. Provide copies to each contractor or vendor so they have what they need for their own tax filing. Deliver your copies for your records. Handle any corrections if a recipient comes back with updated information.

Why This Matters

The IRS takes 1099 reporting seriously. They use these forms to match what you reported paying against what your contractors reported earning. If your forms are late, missing, or contain errors, penalties start at $60 per form and go up from there depending on how late you are. File more than 30 days past the deadline and you’re looking at $130 per form. Miss it entirely and it jumps to $330 per form. That adds up fast when you have multiple contractors.

Beyond penalties, incorrect 1099s create problems for the people receiving them. A wrong amount or a missing form means your contractor’s tax return doesn’t match what the IRS has on file. That creates friction in your business relationships and potentially triggers questions from the IRS directed at both of you.

TIN Mismatches

One of the most common issues is a taxpayer identification number that doesn’t match the name on file with the IRS. This triggers a B-Notice from the IRS requiring you to solicit a corrected W-9 from the recipient. If you don’t respond properly, you could be required to withhold 24% on future payments to that vendor.

Missed Deadlines

January comes fast, and 1099 deadlines arrive right when business owners are already juggling year-end tasks, tax planning, and getting back up to speed after the holidays. It’s easy to push 1099s to the bottom of the list until suddenly the filing deadline has passed and penalties are already accruing.

What Changes

You stop worrying about whether you remembered everyone, whether the amounts are right, or whether you’ll make the deadline. The whole process gets handled for you. We review your records, identify who needs a 1099, verify the details, and get everything filed before the due date.

If you’re also a bookkeeping client, this becomes even smoother because your records are already organized and payment totals are already tracked. But even if 1099 preparation is the only service you need from us, we’ll work with whatever records you have and get it sorted out.

No Penalties, No Surprises

Forms get filed on time with accurate information. You don’t get letters from the IRS about late filings or mismatched TINs. Your contractors receive their forms when they expect them. The whole thing happens without creating stress or eating up your time during an already busy season.

Better Habits Going Forward

Part of the process involves making sure you have proper W-9s on file for everyone you’re paying. If there are gaps, we help you identify them so you can collect that information before it becomes a problem. Over time, this means each year’s 1099 season gets easier because the foundation is already in place.

Houston's Trusted Bookkeeping Firm