Form 1099 Preparation

For many businesses, the preparation of annual information reporting to the IRS, including Form 1099, can be a time-consuming and stressful process. Deadlines are tight, the rules for who requires a 1099 can be confusing, and the penalties for late or incorrect filing can be significant. At Lanphier LLP, we have streamlined this process for Denver businesses of all sizes, preparing and issuing thousands of these forms each January.

We have processes and software in place that allow us to handle 1099 preparation efficiently and cost-effectively. If you find that 1099 preparation is causing you stress each year, allow us to take this off your plate so you can focus on what you do best -- running your business.

Our Complete 1099 Preparation Process

For our clients who are in our full-service flat fee annual agreements, our 1099 services are comprehensive and hands-off for the business owner. We handle every step of the process so that you do not have to worry about missed vendors, incorrect information, or filing deadlines.

What We Handle

• Review of your vendor list to identify who requires a 1099
• Identification of missing taxpayer identification information
• Compiling and verifying W-9 information from your vendors
• Preparing the 1099 forms with accurate payment totals
• Mailing copies to your contractors and vendors
• E-filing with the IRS and applicable state authorities
• Maintaining records for your files

Understanding 1099 Requirements

The IRS requires businesses to file Form 1099-NEC for non-employee compensation of $600 or more paid to contractors, freelancers, and other service providers who are not treated as employees. Form 1099-MISC covers other types of payments including rents, royalties, and certain other income. Colorado businesses also have state filing requirements that must be met alongside federal obligations.

Failing to file 1099 forms correctly and on time can result in penalties that increase the longer the filing is delayed. The IRS has been increasing its enforcement of information reporting requirements in recent years, making compliance more important than ever for Denver-area businesses that work with independent contractors.

Year-Round Planning for 1099 Success

The key to a smooth 1099 filing season is preparation throughout the year. We recommend that our clients collect W-9 forms from new vendors at the time of initial engagement, maintain accurate records of payments to contractors, and review their vendor list periodically. For clients whose bookkeeping we manage, we handle much of this proactively as part of our ongoing services.

Whether you need help with 1099 preparation as a standalone service or as part of a comprehensive accounting and tax relationship, our team is ready to assist. Contact our firm today to discuss your 1099 preparation needs and how we can make this annual obligation as simple and painless as possible.