1099 & W9 Update (Completed)

For years the IRS has struggled with the independent contractor and tax collection. In assessing opportunities to close the tax gap (taxes due but not reported or paid), one of the greatest opportunities comes from expanding the information reporting on taxpayers by payors – the 1099. This time consuming reporting obligation can be streamlined in a number of ways. Join us to learn more”¦

What are the rules regarding paying and IRS reporting on Independent Contractors? How do I avoid the IRS CP-2100 (B-Notices)? What if my vendor claims exemption; must I obtain a W-9 anyway? What are the best practices? How can I minimize risk of improper exemption claims by my vendors? Get the answers to these and related questions to reduce your risk of huge penalties from the IRS.

Who Should Attend
Bank Managers, Compliance Officers, Information Reporting Officers, Tax Managers, CFOs, Controllers, Accounting Managers, Auditors, IT Managers, Compliance Managers, Risk Managers.

Topics Covered

• When to require a Form W-9
• Protocols for setting up new vendors (ICs)
• How to test the accuracy of the W-9 information with the IRS's records — for free!
• Who and what you pay determines whether you must report (1099 reporting)
• Forms to use to document your independent contractor as reportable or non-reportable
• Required governmental reporting on ICs
• Form 1099-Misc — guidelines for proper use and classification of diverse payments on this form
• Best practices for filing 1099s with the IRS — TIP: never file early!
• The government wants to remove the exemptions — what this means to you

Learning Objectives

• Identify the rules requiring W-9 documentation and 1099 reporting
• Recognize how to establish the independent contractor relationship with the right documentation
• Recognize the rules and keep your company in compliance
• Identify that your records are correct and will stand the scrutiny of an IRS 3rd Party Documentation and Reporting audit
• Identify how to avoid the onerous penalties for noncompliance and build the best defense against the 972-CG Notice of Proposed Penalty Letter

Level
Update

Instructional Method
Group: Internet-based

NASBA Field of Study
Taxes (2 hours)

Program Prerequisites
Basic knowledge of 1099 and W-9.

Advance Preparation
None