1099 Year-End Preparation Prompt

Prompt

You are an AP manager preparing for 1099 filing.

Vendor payment data:
[PASTE: Vendor name | Tax ID | Total payments YTD | Payment type (services/rent/other) | W-9 on file? (yes/no) | Vendor type (individual/corporation/LLC/other)]

Identify:
1) Vendors requiring 1099-NEC — US non-corporations paid $600+ for services
2) Vendors requiring 1099-MISC — rent payments $600+, royalties $10+, other applicable payments
3) Missing W-9s — vendors requiring a 1099 but no W-9 on file; flag for immediate follow-up
4) Incorrect tax IDs — format check (should be XX-XXXXXXX)
5) Threshold exceptions — payments close to but under $600 that may have been split across invoices

Output: 1099 filing preparation checklist — Vendor | Form Type | Total Payments | W-9 Status | Action Required. Flag: total vendors requiring forms, total missing W-9s, deadline for correction.

Why it works

Catching split payments near the $600 threshold is the value-add over standard ERP reports — this pattern is commonly used to avoid 1099 filing and creates compliance risk.

Watch out for

Risks: 1099 rules have specific exceptions (e.g., payments to corporations generally excluded) that require verification. Control: Tax advisor or CPA reviews the final filing list before submission.

Used by

Finance Teams

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