Notice the image and the passage circled in RED. This means that your clients, if they pay you by credit or by third party payment system such as PayPal no longer need to issue you a 1099. This is excellent. Only if they pay you by check or cash should they be issuing you a 1099. I love this new rule because it will alleviate me of sending out numerous 1099′s (I am now only going to have to send out 1 because I wrote only one person a check!) However, if most people are like me they don’t read the rules they just do what they’re used to. I have already started receiving 1099′s erroneously and I almost sent them out myself when I did not need to. So, if you’ve send them out and should not have, you’ll need to find out from an accounting professional or someone how to correct the error otherwise your poor vendor will have their income reported twice and that’s not right! So, please let this be a good reminder for us all (especially ME) to read the rules before proceeding each year with someone we are used to doing. Especially when











You need these forms!






