The old saying goes that the two things you can count on are death and taxes. I have one more for you, 1099 forms. Far too many businesses ignore this important filing requirement.

Businesses, new and old, big and small, must check their 1099 reporting requirements for 2011. It is almost a certainty they have 1099s to submit by the end of January. I will go so far as to say that 100% of businesses have 1099 activity to report.

In general, if you pay ANY non-corporate vendor for ANY service with a total calendar year payment exceeding $600, you will be responsible for mailing 1099s. In order to prepare, you must request and maintain current W-9 forms from ALL of your vendors. MAKE SURE THE "EXEMPT" BOX IS CHECKED on the W-9 form. A completed Form W-9 is your "Get Out of Jail Free Card." With more and more businesses behind on their taxes, some estimate 17%, they will not be exempt from backup withholding on payments you make to them. If they are not exempt, YOU are responsible for withholding taxes on their payments and remitting them to the appropriate taxing authority. Failure to file not only carries a penalty, but also includes these back taxes and any penalty and interest for failure to withhold and remit.

Miserable, I know. So contact your CPA: They are available to assist you with your Form 1099 preparation. If they don't hear from you, they assume you are preparing your 1099 & 1096 forms yourself.

BOTTOM LINE: Ignore 1099 forms at your own peril. Overly dramatic? Maybe. But this is a simple routine that is costly if ignored. Consider this a New Year's resolution worth keeping.