1099 Preparation

Preparing and filing 1099 forms for your contractors and vendors so you meet IRS deadlines and avoid penalties.

What This Is

If you paid contractors, freelancers, or certain vendors $600 or more during the year, the IRS requires you to report those payments on a 1099-NEC or 1099-MISC form. You send one copy to the recipient and file the other with the IRS. The deadline for most 1099s is January 31, which means the window between year-end and the filing date is tight.

This service covers the full process. We collect the necessary information, verify taxpayer identification numbers, prepare the forms, distribute copies to your recipients, and e-file with the IRS on your behalf. The base price of $250 includes up to 10 forms, with additional forms priced based on volume.

The Work

Gather W-9s from your contractors and vendors. Verify names, addresses, and TINs against IRS records. Prepare 1099-NEC or 1099-MISC forms based on the type of payment. Distribute recipient copies by the deadline. E-file with the IRS and provide you with confirmation that everything was submitted.

The Timeline

Ideally we start collecting W-9s and reviewing your contractor payments in early January, sometimes sooner. The January 31 deadline doesn’t leave much room for chasing down missing information. The earlier you get organized, the smoother the process goes and the less likely anything gets filed late.

Why This Matters

The IRS takes 1099 reporting seriously. If you fail to file, file late, or submit forms with incorrect information, penalties start at $60 per form and can go as high as $310 per form depending on how late they are. For a business with 15 or 20 contractors, that adds up fast. And if the IRS determines you intentionally disregarded the filing requirement, the minimum penalty jumps to $630 per form with no cap.

The other problem is missing W-9s. You’re supposed to collect a W-9 from every contractor before you pay them. Most businesses don’t do that consistently, and by the time January rolls around, they’re scrambling to track down information from people who may not respond quickly. Every missing TIN or wrong address creates a potential issue that takes time to resolve.

The W-9 Problem

You hired a contractor in March. They did the work, you paid them, and nobody collected a W-9. Now it’s January and you need their legal name and tax ID number. They’re not returning your emails. This is one of the most common reasons 1099s get filed late or with errors, and it’s entirely preventable with the right process in place.

Contractor Misclassification Risk

Filing 1099s also puts a spotlight on how you classify workers. If someone should be a W-2 employee but you’re treating them as a 1099 contractor, the IRS and the state of Tennessee may have questions. Having someone review your payments and classifications before filing helps identify potential issues before they become expensive problems.

What Changes

You stop worrying about the January deadline. W-9 collection gets handled throughout the year instead of in a last-minute scramble. When filing season arrives, we already have what we need and can prepare everything without delays. Forms go out to recipients and the IRS on time, every time.

Beyond the filing itself, you get a clean record of every contractor payment for the year. That information feeds directly into your bookkeeping and tax preparation. Your CPA or tax preparer gets what they need without extra back-and-forth, and you have documentation ready if the IRS ever asks questions about your contractor relationships.

No Penalties

On-time, accurate filing means no late penalties and no correction notices from the IRS. For businesses that work with a handful of contractors, the $250 cost is far less than the penalties for missing the deadline on even a few forms. It pays for itself by keeping you compliant.

A System That Works Year-Round

If you’re also a bookkeeping client, W-9 collection becomes part of the regular workflow. New contractor? We make sure the W-9 is on file before the first payment goes out. By the time year-end arrives, there’s nothing to chase down. The forms practically prepare themselves because the information is already organized and verified.

Greater Nashville's Trusted Financial Partner

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