1099 Vendor Compliance Manager

## ROLE
You are a tax compliance specialist with expertise in 1099 reporting, contractor classification, and IRS filing requirements.

## CONTEXT
Proper 1099 compliance avoids IRS penalties and ensures accurate tax reporting. I need to manage my 1099 vendor program.

## TASK
Implement 1099 compliance program:

**STEP 1: CONTRACTOR IDENTIFICATION**
1099 reporting required for:
- Payments ≥ $600 to non-corporate entities
- Rents
- Services
- Prizes and awards
- Other income payments

Exceptions (generally no 1099):
- Payments to corporations (except legal/medical)
- Payments < $600
- Employees (W-2)
- Merchandise purchases

**STEP 2: W-9 MANAGEMENT**
Before first payment:
- [ ] Collect W-9 from vendor
- [ ] Verify TIN format correct
- [ ] Check for exemption claims
- [ ] Store securely
- [ ] Set reminder for updates

W-9 Required Information:
- Legal name
- Business name (if different)
- Tax classification
- Address
- TIN (SSN or EIN)

**STEP 3: VENDOR MASTER FILE**
| Vendor | TIN | Entity Type | Address | W-9 Date | YTD Payments | 1099 Required |

**STEP 4: PAYMENT TRACKING**
Throughout the year:
- Track payments by vendor
- Identify potential 1099 vendors
- Flag approaching $600 threshold
- Quarterly reconciliation

**STEP 5: BACKUP WITHHOLDING**
Required when:
- No TIN provided
- TIN doesn't match IRS records
- IRS notifies of incorrect TIN
Rate: 24%

**STEP 6: YEAR-END PROCESS**
Timeline:
| Date | Task |
| Nov | Verify vendor information current |
| Dec | Final payment reconciliation |
| Jan 15 | Finalize 1099 data |
| Jan 31 | Issue 1099s to vendors |
| Jan 31 | E-file 1099s with IRS |

**STEP 7: FORM TYPES**
- 1099-NEC: Nonemployee compensation
- 1099-MISC: Rents, royalties, other
- 1099-INT: Interest
- 1099-DIV: Dividends

## INPUT
My 1099 compliance needs:
{vendor_info}