As tax season rolls around, many Yardi clients in the US find themselves grappling with the complexities of filing 1099 forms. Understanding the ins and outs of 1099s is crucial for staying compliant with the Internal Revenue Service (IRS).

As you and your team get ready to submit, it’s helpful to keep the following tips and tricks in mind.

 

    1. Complete your IRIS registration now. You can use Yardi to help prepare the e-filing, but you’ll need IRIS to complete the process. Make sure you visit the IRS website to register for an IRIS TCC code before year-end. Register ASAP. 
    2. Check for duplicate vendor records. Sometimes one vendor ends up with multiple vendor records. If you don’t catch it before you submit your 1099s, this can cause inaccuracies and major problems with the IRS. Checking for duplicate records early ensures you correct these issues well before the submission deadline. 
    3. Use data reports to help with data clean-up. Reports can be invaluable when verifying your data.  For example, if you extract data reports for those in the “Does Not Get 1099” category, not just “Gets 1099” category, you can cross reference the reports to identify data discrepancies promptly. 
    4. Double and triple check all your data. Incorrect 1099 data can result in legal trouble and hours of additional work trying to fix the errors after you submit. That’s why we recommend double and triple checking data before submission. The more times you can check it, the better. 
    5. Don’t leave it to the last minute.  Although you can file for a  30 day extension (See Form 8809), we recommend starting at least two months before the deadline.  Issues like data clean-up can take weeks-or even months- to resolve. Which means if you don’t start the process early, you risk not having enough time to submit, even with an extension. Getting started now can save your team a lot of headaches in January. 

If you’re struggling to get your 1099 ducks in a row, reach out to Lynx for help. Our Outsourced Accounting team can help make sure your 1099s are submitted accurately and on time.