Friday, January 6, 2012

$600+ to a vendor? You need 1099mis!

I’m the Treasurer of my local unit, and I recall hearing something about there being a requirement to provide information to the Internal  Revenue Service about vendors we have paid during the past calendar year.   Can you help me figure out what to do? 

Yes.  If you paid more than $600 during calendar year 2011 to an individual or an unincorporated business, you must file an IRS Form 1099-MISC.  Instructions about how to complete the form are available on the IRS website; but unfortunately the forms are not available for download.  You can pick them up at a local IRS office, or order the form from the IRS by mail. Hopefully you obtained the necessary information at the time of contracting with the vendor by having  them fill out an IRS Form W-9, but if not you should follow up with the vendor  to obtain the necessary information.