Your assistant puts the wrong dollar amount on the form. Contractors sometimes fill out a form W-9 incorrectly. What to do if you find a mistake after filing It should be noted that additional penalties may be given if you file on paper when you’re required to file electronically, you report an incorrect TIN, don’t report one at all, or if you file paper forms that aren’t machine-readable.
$100 if you file more than 30 days late, but before August 1. If you are a filer that missed the due date, it’s not the end of the world, but you will have to pay penalties for late 1099 forms as follows: What to do if you miss the 1099 filing deadline Keep in mind that you retain Copy C for your own records. A Form 1096 summarizes the totals from your contractor payments, and the IRS uses Form 1096 to track every physical 1099 you’re filing for the year. You will also mail (or electronically file) Copy A of each Form 1099-NEC and form 1096 to the IRS no later than February 1st. If you miss this deadline, you will be ending up paying the IRS penalty for late submission and your contractors will end up paying and filing their taxes late. You must send the form, specifically, a Copy B of form 1099-NEC, to the contractor no later than February 1st. The next step is to send out the forms to the contractor and to the IRS. backup withholding), you will also need to fill in Box 4 or Box 5 for federal or state income tax you withheld. If you withheld any pay from your contractor (e.g. Once you’re provided with forms W-9 from your contractors, start filling them out with your federal Tax ID number, the amount of money paid to the contractor, which will be entered in Box 1 under the title “Non-employee compensation”. The total amount you paid them during the year. 
Information you need before completing a 1099 is as follows: The W-9 also includes their tax filing entity, so you can know if you need to issue 1099 for those vendors.
A Form W-9 includes their name, address, and social security number (SSN) or Employer Identification Number (EIN). In other words, having contractors fill out a W-9 should be one of the first administrative tasks you complete after hiring them. Vendors should have already filled out Form W-9 and provided it to you when you engaged their services. Handling your independent contractor taxes is pretty easy.The first thing you need to do to prepare a 1099 is that you make sure you have all of the correct information on your contractors or vendors.
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