As the new year begins we look forward to new goals and accomplishments. However, it is important to take our eyes off the future-focused binoculars and think back over the past year.
Remember that leaky roof earlier this year? After a deep dive into Yelp, you finally found someone willing to fix it this century. Once the repair was completed, you happily glided your pen across the signature line on your check, no questions asked, and it was over. Whew! Or was it?
If that repair cost over $600, did you get a Form W-9 from that contractor? Did you ask if they were an S-Corporation (& therefore exempt from needing a 1099)? If your eyes widened & your palms began sweating, I bet you didn’t ask those questions. Don’t abandon all hope. Look at your records to see if you can find the invoice. Log into your bank account and review the check images. Once found, pick up the tiny computer in your pocket and reach out to the contractor. You will find that most contractors are happy to answer those questions.
If needed, send a copy of the Form W-9 to the contractor to complete & sign. OH! And don’t forget to send a copy to your trusted CPA.