Key takeaways
- Ask for a W-9 before the first payment, not at year end.
- Pull the vendor list in November and compare it to the W-9s on file.
- Use the $2,000 threshold for payments made in 2026, and check the exceptions.
- Keep a record of every W-9 request and every missing tax ID before the 1099s are filed.
Start before December
Run the vendor report in November, while the year's payments are still being recorded and the client can still find the vendors. Waiting until January gives the firm less time to chase a missing W-9 and less time to correct a wrong tax ID.
The report should show every vendor, the total paid and the payment method. A vendor paid by card or payment app is generally reported by the payment company, so it may not belong on the client's 1099 list.
Send the client a short request: the vendor report, the W-9s on file and a list of the vendors paid $2,000 or more. The client can confirm the list before the firm prepares the forms.
Collect the W-9s
Ask for a signed W-9 from every new contractor before the first payment. For existing vendors, compare the W-9 on file to the vendor record and ask for a new one if the name, address, entity type or tax ID changed.
Collect the W-9 as a file through a secure link. Do not ask the client to type a Social Security number or EIN into an email or a checklist answer.
Keep a log of each request: the vendor, the date asked, the date received and the person who followed up. The log is the evidence that the business tried to collect the form.
Apply the 2026 threshold
For payments made in 2026, the threshold for Forms 1099-NEC and most 1099-MISC payments is $2,000 per payee for the year, up from $600 for earlier payments.
Some payments keep their own rules. Gross proceeds to attorneys and royalties are common examples, and backup withholding can require a form regardless of the amount. Check the current IRS instructions before deciding that a vendor is below the threshold.
The threshold is applied to the total paid to the payee for the year, not to each invoice. A vendor paid $500 four times is over the threshold.
Handle missing tax IDs
A vendor with no W-9 or no tax ID is not a reason to skip the 1099. The business may need to file with a missing TIN, and backup withholding may apply to future payments.
Ask the vendor once more before the filing, in writing, and keep the record. If the vendor still does not respond, tell the client what the filing will show and what the exposure is.
Do not invent a tax ID or use the client's own number. A wrong TIN creates a correction and a penalty notice.
File and keep the records
Prepare the 1099s from the vendor list, not from the bank statement. The vendor list shows the payments by payee, and the bank statement mixes in transfers, refunds and unrelated deposits.
Keep the filed forms, the e-file confirmation and the W-9s together. The record should show what was filed, to whom and with which tax ID.
Send the recipient copies by the deadline and keep proof of delivery. A recipient who says the form never arrived is easier to answer with a delivery record.
Review the process for next year
At the end of the season, count the vendors with no W-9, the corrections and the forms filed late. Each one points to a step in the process that can be fixed.
The best fix is usually at onboarding: collect the W-9 before the first payment, and update it when the vendor's details change.
Write the fix into the vendor onboarding checklist, so the next year starts with the record instead of the chase.