Hi everyone,
As we move into the final quarter of the year, this is a great time to double‑check your vendor files and make sure you have current W‑9s on hand. Clean documentation now means a smoother, stress‑free 1099 season later.
Why W‑9s Matter
Form W‑9 provides the legal name, business classification, address, and tax ID you’re required to have before paying a contractor or vendor who may need a 1099. Missing or outdated forms are one of the most common causes of filing delays and corrected forms in January.
Best Practices for 2026
- Collect a W‑9 before the first payment. Make this part of your onboarding process for any contractor or vendor providing services or rent.
- Do not pay vendors who refuse to provide a W‑9. The IRS requires backup withholding if a vendor won’t furnish their tax ID.
- Request updated W‑9s when information changes. New addresses, entity changes, or name changes all require a new form.
- Store W‑9s securely. These forms contain sensitive information and should be kept in a protected digital or physical file.
- Review your vendor list quarterly. This helps you catch missing forms long before year‑end.
2026 1099 Reporting Requirements
Beginning with the 2026 filing year, the IRS has increased the reporting threshold for Forms 1099‑NEC and 1099‑MISC to $2,000 for most payments to non‑employees. Even with the higher threshold, you should still collect a W‑9 before making any payment. It protects you if reporting becomes necessary later and ensures your records stay compliant.
If you don’t have a W‑9 on file, you are still required to file using whatever information you have and issue a corrected form once the vendor provides updated details.
Common Issues We See
- Vendors paid throughout the year with no W‑9 on file
- Incorrect legal names or outdated EINs
- Contractors switching entity types without notifying the business
- Waiting until January to request forms, when vendors are harder to reach
If you’d like help reviewing your vendor list, tightening up your W‑9 workflow, or preparing for 1099 season ahead of time, EVT is here to support you.