Recipient Information Determination Logic for 1099 Forms

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2025 Update Coming Soon

A revision to this article for 2025 filing season will be available by Jan 1st.

Before the 1099 forms are in the status of Submitted, Rejected, or Accepted, they are in the "pre-filing" stage. Think of this stage as the preparatory phase, where all necessary details are being gathered and cross-checked. During this stage, recipient information can be updated or modified in two primary ways:

1. Payer Edits: The payer manually edits the recipient's details in Wingspan, such as their name, Tax Identification Number (TIN), address, status or amount.

   Example: If a company realizes they have the wrong address for a contractor in Wingspan, they can manually correct it while still in the pre-filing stage.
2. Recipient Edits: The recipient themselves provides their W-9 information in Wingspan, which then gets updated in real-time.

   Example: A freelancer updates their address in Wingspan during the pre-filing stage. However, later on, the company they work for manually changes the address in Wingspan to a previous one they have on file. This means the freelancer's updated address is overwritten, and the old address remains on the form.

It's crucial to note that during this pre-filing stage, any changes or edits made by the payer in Wingspan will overwrite the current W-9 information if no edits have been made by the payer. This ensures that the most recent and relevant details are always captured.

Wingspan's Logic for Determining 1099 Recipient Information:

1. EIN (Employer Identification Number) Preference:

   • If an EIN is preferred:

     • The 1099 will display the following:
       • Name: Legal business name.
       • TIN: Employer Identification Number.
       • Address: Business address, but if it's unavailable, the personal address will be used.

   • If an EIN is not preferred, the system will then check if the recipient operates as a sole proprietor.

2. Sole Proprietorship / Single Member LLC Check:

   • If the recipient is a sole proprietor or single-member LLC:

     • The 1099 will display:
       • Name: A combination of the legal business name, first name, and last name.
       • TIN: Social Security Number.
       • Address: Personal address.

   • If the recipient is not a sole proprietor:

     • The 1099 will simply display:
       • Name: The individual's first and last name.
       • TIN: Social Security Number.
       • Address: Personal address.

Through this process, Wingspan ensures that the information on the 1099 form is accurate and tailored to the nature of the recipient's business structure.