Perfecting the Form

One of the first lessons small business owners should learn is the importance of understanding your firm’s responsibilities relative to IRS requirements surrounding payment reporting. The most important Forms in our experience are the W9 and the 1099.

The W9 records your name and social security number. It is required to be given if you are not a corporate organization and your client paid you over $600 on an annual basis. If you choose to ignore requests to provide this form to your client, you are in violation of IRS regulations. We have heard of and personally experienced this, people choose to ignore our requests and simply ‘ghost’ you. Rest assured, those nonresponders will not be given future work.

If a company asks for and receives the W9, they must then issue a 1099 Form, usually no later than January 31st. This officially records the payment you made or received over $600 in cash or checks. Note that credit card payments do not require a W9 or the associated 1099. The credit card transaction with the payment processor acts as its own record of payment.

Also, be sure to annually review any changes by the IRS around these forms. There are apparently some new rules about filing these forms electronically. If you have an accountant, they should be up to date on changes and will issue the 1099 for you and your company. If you file your own taxes, which we never have, then you are on point for knowing these changes and abiding by them.

In summary, if you are organized as an LLC, a PLLC, a Partnership,, a DBA, or an individual, refer to your accountant or IRS.gov for the requirements around these forms. It is your legal responsibility to provide them when asked and issue them when required.

Be well.