1099 Form Preparation Cumming, GA

Form 1099-NEC is the main one for most Cumming small businesses. You issue it to any U.S. person or single-member LLC you paid $600 or more during the calendar year for services rendered in the course of your trade or business. The classic example: subcontractors, freelancers, consultants, attorneys (always, regardless of entity type), and independent professionals.

You do not issue 1099s to corporations (other than attorneys), to vendors paid via credit card or PayPal Goods and Services (those are reported by the payment processor on Form 1099-K), to employees (W-2), or to vendors below the $600 threshold. Getting these distinctions right matters because over-issuing wastes time and under-issuing risks penalties.

Form 1099-MISC still applies for rent paid to landlords, prizes and awards, gross proceeds to attorneys, and a few other niche categories. We sort each vendor into the right form during the November-December prep window so January filing is just a print-and-send step.

For monthly bookkeeping and accounts payable management clients, 1099 prep starts the day a new vendor is set up. We collect the W-9 before the first payment goes out, flag the vendor as 1099-eligible inside QuickBooks, and track payments to that vendor against the $600 threshold throughout the year. By the time November arrives, the data is already clean.

For one-time 1099 engagements (clients who do not run monthly bookkeeping with us), we pull the year's vendor activity from QuickBooks in mid-November, send out a list of vendors who likely need 1099s, chase any missing W-9s, and have everything ready for January filing. The earlier we start, the smoother it goes. Vendors who go quiet in mid-December become almost impossible to reach in January.

Filing happens in two pieces. The recipient copy goes to each contractor (mailed by us or e-delivered if they consented). The IRS copy goes electronically to the IRS via the FIRE system or a partner platform like Tax1099. Both are due January 31 for the prior calendar year. We hit the deadline every year.

Late or incorrect 1099 penalties scale with how late and how many forms. As of 2024, the schedule is: $60 per form if filed within 30 days of the deadline, $130 per form if filed by August 1, $330 per form if filed after August 1 or not at all, capped at over $4 million for large businesses ($1.4 million for small businesses). Intentional disregard penalties start at $660 per form with no cap.

For a Cumming contractor with 25 subcontractors, a late filing across the board could be $8,250 to $16,500 in penalties. None of this is a real cost if 1099 prep is run on a normal schedule. It only becomes a cost when prep gets ignored until February.

Mismatched TIN penalties are another category. If a contractor's name and SSN/EIN do not match IRS records, the 1099 gets flagged. We run TIN matching through the IRS TIN matching service before filing so mismatches get corrected with the contractor before they become an IRS issue.

For monthly bookkeeping or AP clients, 1099 prep is included for the first 10 forms; additional forms are $10 each. For one-time 1099 engagements, pricing is a $250 base fee plus $15 per form, which covers W-9 chase, TIN matching, e-filing, and recipient delivery.

This is the cheapest tax-compliance step we offer. The cost of skipping it (penalties, IRS notices, contractor relationships strained by missing or wrong forms) is many multiples of the prep fee.