Why We Ask for W-9s Before January (and Why You Should Too)

As a business owner, January is already a busy time—wrapping up the year, prepping for taxes, and likely juggling a lot of moving parts. That’s why at Lookout Bookkeeping, we don’t wait until then to start thinking about 1099s. Instead, we help our clients stay ahead by requesting W-9 forms throughout the year, as we notice new vendors being paid.

Here’s why that simple habit can save you time, stress, and potential IRS trouble down the road.

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What Is a W-9 and Why Is It Important?

A W-9 form provides you with the information needed to issue a 1099-NEC to a vendor at year-end—things like their name, business type, and Taxpayer Identification Number (TIN). You’ll need to issue a 1099-NEC to any service provider you pay $600 or more during the year, unless they are incorporated (and even then, there are some exceptions).

The problem? Many business owners wait until tax season to track this information down—and by then, the vendor may be unresponsive or unavailable. That’s why we always recommend:

Collect the W-9 before you pay the vendor.

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Benefits of Collecting W-9s Up Front

• ✅ You’ll already have what you need when 1099s are due.
• ✅ You avoid chasing down unresponsive vendors in January.
• ✅ You protect your deductions in the event of an audit.

Waiting too long can result in missing forms, delayed filings, and even disallowed expenses if the IRS audits your records and finds that no 1099 was filed and no W-9 was collected.

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How We Help Make It Easy

At Lookout Bookkeeping, we take a proactive approach. Here’s what happens when we spot a vendor that may need a 1099:

1. We ask for the vendor’s email address.
2. We send a W-9 request through our secure client portal.
3. We notify you once the vendor submits it.
4. We send up to three automated reminders if they haven’t responded.
5. If we’re still unable to collect it, we alert you so you can follow up directly.

We handle the heavy lifting—so you can focus on running your business, not chasing paperwork.

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Your Role as the Business Owner

Even with our help, the responsibility for collecting this information ultimately rests with you. The IRS holds business owners accountable for issuing correct 1099s, and that means you must:

• Ensure you’ve collected a W-9 from any non-employee service provider paid $600 or more in a calendar year.
• Keep this documentation on file.
• File a 1099-NEC for each applicable vendor by the IRS deadline.

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Helpful Resources

Need to brush up on the rules or grab a copy of the form? Here are some resources to help:

• ? Do You Need to Issue a 1099-NEC?
• ? Download the IRS W-9 Form (PDF)

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Let’s Make Tax Season Smoother

If you’d like help putting a simple system in place for vendor onboarding and W-9 collection, we’d love to partner with you. Staying ahead of tax deadlines doesn’t have to be stressful—with the right tools and team in your corner, it can be seamless.

? Have questions or need support? If you’re not a client, fill out our Intake Form; if you’re a client, send us a message through your client portal.

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