Sending and filling 1099s

[jyl]

As a business, I’m supposed to file and send a 1099 form for every vendor who i’ve paid more than 6 cents - no, more than that, but a silly small threshold amount.

Do you have your CPA do this, or do it yourself? It is time consuming!

[GH85Carrera]

You don't need to send them to vendors who you paid with a credit card, as the IRS has those records. And You don't have to send them to a corporation. Amazon does not need one.

I just let my CPA do it. We don't have that many vendors to send them to.

https://www.irs.gov/pub/irs-prior/f1099msc--2025.pdf

There are some gotchas involved. Be careful.

[look 171]

Are you thinking about 1099 your contractors? Like Glen said, no need if they are a corp. Super simple, print out 1099 form and make it out to them. Give that to your CPA and they will take care of the rest.

[jyl]

Does “corp” include LLC?

[look 171]

LLCs may file as an S or C corp, then no, but they can also be a single member LLC, then yes. What should have been done is before work starts, stick them with a W9. This way you and them know what's to be expected.

[Tidybuoy]

I purchase the forms and software from Quill or Office Depot. It's very easy to do and you only have to issue 1099's to service workers/contractors. You don't issue them for suppliers of items (i.e., inventory, supplies). You don't have to issue to corporations however, you do have to issue to lawyers (even if a law corporation).

You mail the 1099's to each and then there is an electronic form that summarizes everything and that goes to the IRS.

I personally issue approximately 70 1099's and it takes a couple of hours to complete. Of course, that will depend on the accounting system that you use at work.

[GothingNC]

I use Tax Bandits to process 1099's
Just upload the info from an excel spreadsheet and they send out the 1099s

No need to purchase various forms and I am required to file electronically

The Internal Revenue Service (IRS) has fundamentally changed the requirements for how businesses must submit information returns, including the entire Form 1099 series. Mandatory electronic filing now applies to a significantly broader range of payers than in previous years. These new regulations, implemented for tax year 2023 filings due in 2024, require a comprehensive shift from paper to digital submission for many small and mid-sized entities.

The Current Electronic Filing Threshold
The previous mandate for information returns required electronic filing only when a payer submitted 250 or more of a single form type. This high threshold allowed many businesses to continue using paper forms. The new regulations dramatically reduce this compliance trigger to just 10 returns in aggregate. This means any entity filing a total of 10 or more information returns across nearly all categories must use an electronic method.