The IRS wants you to report payments to vendors on 1099’s who are not a C corporation or S Corporation or they are landlords or attorneys and over $600 per vendor.
The form W-9 should be requested from all your vendors and they mark in box 3 their tax status.
The IRS is making this a priority going forward. If you have payments to individuals that you do not report you will be subject to a 24% withholding tax. Big picture, the IRS is hiring thousands of auditors and they have to have something to do that is easy and this would be easy audits for the IRS.
Its time to get those vendors to complete a W-9 and then issue them a 1099 in January. We can help you file those 1099’s please call the office when you have the information together.