It's the time of year to get your accounting and tax records up-to-date. Have you sent out 1099s to service providers to whom you paid more than $600 during the year? The IRS requires that the 1099s be postmarked by January 31. And, don't forget to submit the summary form (Form 1096) to the IRS by February 28.

Also, if you don't have a 'Request for Taxpayer Identification Number and Certification' [W-9 form] on file for each of your service providers, you'll need to have your service providers complete one for your files now so you can complete their 1099. Here's a link to download a PDF file of the W-9 form: http://www.irs.gov/pub/irs-pdf/fw9.pdf

You'll also need to send these forms to professional services providers you use such as your attorney and your accountant if you paid them more than $600 during the year. So be sure to not overlook them. If you aren't sure whether you need to send a 1099 to a service provider, the safest thing to do is to send one to them. 
 
[If you have paid employees, you have the same deadlines but the form is a W-2 and the summary form to send to the IRS is a W-3.] 
 
Action steps:
 
Take the time NOW to go through your books to look for anyone you paid $600 or more to and get a 1099 filled out and sent to them. If you don't have a W-9 on file for them, request that they send you one now.
 
During 2006, send out a W-9 to anyone you pay for services before you pay their invoice. This is an effective way to ensure that this form gets completed and returned to you. Then you'll have all the information you need to send out your 1099s in January of 2007.