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Tax Preparation & Planning
Effective tax preparation and planning can help you to minimize your future tax liability. We can help you proactively manage both your personal and your business tax issues, including understanding how upcoming business opportunities impact your tax status and vice versa. Not all tax planning opportunities are readily apparent. By having us on your team, you are more likely to benefit from those opportunities. We understand how the latest federal, state and local tax legislation and other developments affect you and your business and we are constantly identifying new ways to reduce federal, state or local tax liabilities.
What happens if a contractor or vendor refuses to fill out a W-9 form?
- Make sure to document any attempts to request a Form W-9 in writing. The easiest way to do this is via email. The IRS requires that you request a W-9 using “three solicitations”.
● The first request should take place at the onset of your business relationship, prior to paying any sums to the person.
● The second request should occur by December 31 of the same year in which you started working together.
● A third request should happen by December 31 of the next year.
- If your requests prove unsuccessful, you must begin backup withholding of 24% immediately and report on IRS Form 945.
- If you have paid the vendor or subcontractor at least $600 over the course of the year, you still need to file a Form 1099-NEC for this payee. Because you do not have the needed information to fill out a digital Form 1099-NEC for this vendor, you must complete a paper form. This is due to the fact that the IRS won’t allow for blank spaces on a digital form.
When preparing the paper Form 1099-NEC, make sure you write the word “refused” in the Tax Identification Number (TIN) box where you would normally put their social security number or employee identification number.
- Once the Form 1099-NEC is complete, send the vendor and the IRS their copies just like you would for anyone else.
Sales Tax Services
State and local tax authorities are looking to maximize sales tax collections. We can help you understand and manage your sales tax obligations and prepare sales tax returns in an efficient and timely manner.
Keep in mind, If your small business does not file a 1099 for everyone that should receive one, you may have to pay a penalty ranging from $50 to $270 per unfiled 1099.