It’s January and the 1099 filing deadline looms again. And AGAIN, you are contacting last year’s Vendors for their W9. Isn’t it time to STOP doing this? Starting next year, implement the following policy and you will NEVER have to go back to a Vendor for their Tax ID again:
When a Vendor submits their first bill to you, immediately request a W9. Simply refuse to enter any new Vendors in your accounting system without a W9. Most large companies have this policy in place in their Accounting Department to avoid problems with the IRS.
Some small businesses will hand write a check before entering the Vendors into their accounting system. If you occasionally find yourself doing this, simply require the Vendor to submit a W9 before you surrender the check.