You’ll need to do it, so make sure to do it right.

All businesses make payments to vendors. But are you required to report these payments to the IRS? It depends on who you are making payments to and the amount being paid during the year.

Various types of Forms 1099 must be provided to certain type of payees by January 31, and, new for 2017, to the IRS also by January 31. Here’s a rundown of some of the more common payments that may require an information return.

These forms must be mailed to the recipient by January 31 and are due to the IRS at the same time.

If you made payments to the vendors via credit card charges, you do not have to include these payments as they will already be picked up by 1099-K through merchant services.

Bear in mind that the penalties for failure to comply with these information-reporting requirements can be stiff. The IRS has also increased penalties for failure to file Form 1099; it is now a total of $520 per Form 1099 for not meeting this requirement. These new questions and the increased penalties are evidence that the IRS is trying to find businesses that are not filing Form 1099. It is more important than ever that this filing requirement is not overlooked.