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BytesAgain β€Ί Skills β€Ί Vendor Compliance 1099
πŸ¦€ ClawHub

Vendor Compliance 1099

by @samledger67-dotcom

1099 vendor compliance pipeline for accounting firms. Pulls full-year General Ledger from QBO, aggregates vendor payments, applies IRS $600 threshold, classi...

Versionv1.0.2
Downloads833
#clawhub
TERMINAL
clawhub install vendor-compliance-1099

πŸ“– About This Skill

name: vendor-compliance-1099 description: > 1099 vendor compliance pipeline for accounting firms. Pulls full-year General Ledger from QBO, aggregates vendor payments, applies IRS $600 threshold, classifies 1099-NEC vs 1099-MISC, checks corporate exemptions, tracks W-9 and TIN status, filters credit card payments (1099-K handled by processor), calculates late-filing penalties, and produces year-over-year CDC. Outputs an 8-tab Excel workbook. Use for year-end 1099 compliance runs, W-9 tracking, and IRS threshold checks. NOT for payroll W-2, 1042-S foreign withholding, or 1099-K reconciliation. version: 1.0.0 author: samledger67 tags: - finance - accounting - tax - 1099 - compliance - vendor-management - QBO updated: 2026-03-18

Skill: vendor-compliance-1099

Description

1099 vendor compliance pipeline for accounting firms. Pulls the full-year General Ledger from QBO, aggregates vendor payments by name, applies IRS $600 threshold, classifies 1099-NEC vs 1099-MISC, checks corporate exemptions, tracks W-9 and TIN status, filters credit card payments (1099-K handled by processor), calculates late-filing penalties, and produces a year-over-year CDC. Outputs an 8-tab Excel workbook.

Trigger phrases: "run 1099 compliance," "vendor 1099 check," "pull 1099 list," "who needs a 1099," "1099 vendor scan," "W-9 tracker," "1099-NEC list," "1099-MISC list"

NOT for: payroll W-2 compliance, 1042-S foreign withholding, 1099-K reconciliation (CC processor), or non-US entities.

Pipeline Location

scripts/pipelines/vendor-compliance-1099.py

Usage

# Standard run
python3 scripts/pipelines/vendor-compliance-1099.py --slug my-client --year 2025
QBO sandbox

python3 scripts/pipelines/vendor-compliance-1099.py --slug my-client --year 2025 --sandbox
Custom output directory

python3 scripts/pipelines/vendor-compliance-1099.py --slug my-client --year 2025 --out ~/Desktop/1099s
Skip GL pull (empty vendor list β€” testing only)

python3 scripts/pipelines/vendor-compliance-1099.py --slug my-client --year 2025 --skip-gl

Arguments: | Flag | Required | Default | Notes | |------|----------|---------|-------| | --slug | βœ… | β€” | QBO client slug | | --year | βœ… | β€” | Tax year (e.g. 2025) | | --sandbox | ❌ | false | Use QBO sandbox | | --skip-gl | ❌ | false | Skip GL pull (empty output β€” testing only) | | --out | ❌ | ~/Desktop | Output directory |

Output: 8-Tab Excel Workbook

| Tab | Contents | |-----|----------| | Vendor Summary | All vendors: total paid, ACH/check/wire vs CC split, form type, corp exempt flag, action required | | 1099-NEC List | Contractors/service vendors β‰₯$600 (reportable amount only), W-9 status, TIN status, action | | 1099-MISC List | Rent, royalties, prizes β‰₯$600 with MISC box classification (Box 1/2/3/6/10) | | Exemptions | Corp-flagged vendors (LLC/Inc/Corp/Ltd) requiring manual entity-type verification before skipping 1099 | | W-9 Tracker | Per-vendor W-9 received/pending/missing status; persisted between runs; editable date/TIN fields | | Payment Methods | ACH/check/wire vs. credit card split per vendor; CC excluded from 1099 reportable amount | | Penalties Calc | IRC Β§6721/6722 penalty scenarios: on-time, 15/30/45/60/90 days late + today's actual exposure | | CDC Log | New vendors (not in prior year), dropped vendors, amount changes β‰₯10% or β‰₯$500 YoY |

Output filename: VendorCompliance_1099_{slug}_{year}.xlsx

Key IRS Rules Implemented

$600 Threshold

  • Applied to ACH/check/wire amounts only β€” credit card payments excluded (processor files 1099-K)
  • Threshold is per-vendor, full calendar year aggregate

    • 1099 Type Classification

    | Form | When | Keyword triggers | |------|------|-----------------| | 1099-NEC | Non-employee compensation: contractors, consultants, attorneys, sole proprietors | contractor, freelance, consultant, attorney, repair, cleaning, design, etc. | | 1099-MISC | Rent, royalties, prizes, medical payments | rent, royalty, prize, award, medical, healthcare |

    Default is 1099-NEC β€” NEC is assumed for all service payments unless account/memo indicates MISC category.

    Corporate Exemption

  • Vendor names matching LLC|Inc|Corp|Ltd|Co.|Company|etc. β†’ flagged as potentially exempt
  • Still appear in Exemptions tab for manual verification
  • Exception β€” always file regardless of entity type:
    • - Attorneys (IRC Β§6045(f)) β†’ 1099-NEC - Medical providers β†’ 1099-MISC Box 6

    Payment Method Filter

  • Credit card keywords in memo/txn_type/split β†’ classified as CC, excluded from reportable amount
  • ACH/check/wire β†’ included in reportable amount
  • Unclassified payments β†’ included (conservative β€” better to over-report)

    • W-9 & TIN Tracking

  • W-9 status persisted at .cache/vendor-compliance-1099/{slug}-w9.json
  • New vendors auto-default to NO status
  • TIN status persisted at .cache/vendor-compliance-1099/{slug}-tin.json
  • Backup withholding: 24% applies if vendor fails to provide valid TIN

    • Filing Deadlines

    | Form | Recipient Copy | IRS Paper | IRS e-File | |------|---------------|-----------|-----------| | 1099-NEC | January 31 | January 31 | January 31 | | 1099-MISC (Box 7) | January 31 | January 31 | January 31 | | 1099-MISC (other boxes) | January 31 | February 28 | March 31 |

    e-File required if filing 10+ information returns.

    Penalty Rates (IRC Β§6721/6722 β€” 2024)

    | Days Late | Per Form | Small Biz Annual Cap | |-----------|----------|---------------------| | ≀30 days | $60 | $232,500 | | 31–60 days | $120 | $664,500 | | >60 days | $310 | $1,329,000 | | Intentional disregard | $630 minimum | No cap |

    Small business = avg annual gross receipts ≀$5M for 3 prior years.

    Cache Files

    | File | Purpose | |------|---------| | .cache/vendor-compliance-1099/{slug}-{year}.json | YoY snapshot for CDC (auto-saved each run) | | .cache/vendor-compliance-1099/{slug}-{year-1}.json | Prior year snapshot for comparison | | .cache/vendor-compliance-1099/{slug}-w9.json | W-9 status (persisted, editable manually) | | .cache/vendor-compliance-1099/{slug}-tin.json | TIN status (persisted, editable manually) |

    Updating W-9 status manually: 

    # Edit cache file directly to update W-9 status
cat .cache/vendor-compliance-1099/my-client-w9.json

    Modify "VendorName": "YES" | "NO" | "PENDING"
    

    Then re-run pipeline β€” status will be loaded automatically

    Integration Requirements

  • QBO Client: Node.js QBO client (auth token must be set)
  • Python packages: pip install openpyxl
  • GL access required: Pipeline reads full-year GL β€” ensure QBO auth has GL report access
  • No write access to QBO β€” read-only integration

    • Decimal Math

    All financial calculations use Python Decimal with ROUND_HALF_UP at 2 decimal places. No float arithmetic. Same pattern as tax-package-prep.py and pl-deep-analysis.py.

    When NOT to Use This Skill

  • Payroll / W-2 compliance β†’ separate payroll workflow
  • 1099-K reconciliation β†’ CC processor provides (not Sam's responsibility)
  • Foreign vendor withholding β†’ Form 1042-S, different rules
  • State-level 1099 filing β†’ varies by state, not covered here
  • 1099-INT / 1099-DIV / 1099-B β†’ investment/bank-issued, not vendor compliance

    • Workflow Checklist

    Run this pipeline as part of year-end close:

    1. November/December: Pre-screen β€” run pipeline to identify missing W-9s before year-end 2. January (early): Final run β€” full year GL aggregation 3. January 15: W-9 collection deadline (internal) 4. January 25: Prepare and review filings 5. January 31: File 1099-NEC (recipient + IRS) 6. February 28 / March 31: File 1099-MISC (IRS paper/e-file)

    πŸ’‘ Examples

    # Standard run
python3 scripts/pipelines/vendor-compliance-1099.py --slug my-client --year 2025
    QBO sandbox
    
python3 scripts/pipelines/vendor-compliance-1099.py --slug my-client --year 2025 --sandbox
    Custom output directory
    
python3 scripts/pipelines/vendor-compliance-1099.py --slug my-client --year 2025 --out ~/Desktop/1099s
    Skip GL pull (empty vendor list β€” testing only)
    
python3 scripts/pipelines/vendor-compliance-1099.py --slug my-client --year 2025 --skip-gl

    Arguments: | Flag | Required | Default | Notes | |------|----------|---------|-------| | --slug | βœ… | β€” | QBO client slug | | --year | βœ… | β€” | Tax year (e.g. 2025) | | --sandbox | ❌ | false | Use QBO sandbox | | --skip-gl | ❌ | false | Skip GL pull (empty output β€” testing only) | | --out | ❌ | ~/Desktop | Output directory |