1099 W-9 Validation and 1099 Reporting Basics Run-Down

NOTE: Go to My Professional Profile in your CCH CPELink account settings to ensure your name, and PTIN number; matches your PTIN card

With constant revisions to Form 1099 and the related rule changes, it is crucial to remain up-to-date with the current information reporting laws to avoid those dreaded penalties and interest not to mention the time consumed to make corrections. Whether you are new or seeking an update this course will provide CPA’s, Accounts Payable, Payroll, and Tax with plain English guidance to help minimize 1099 filing mistakes while breaking down the toughest 1099 payee and payment reporting situations.

In this course, industry expert and corporate tax attorney Steven D. Mercatante Esq. takes a look at some of the more common problems experienced by CPA’s, accounts payable, and tax departments related to documenting, validating, and reporting payee information on IRS Forms 1099. He identifies key issues and best-practices for addressing them.

Topics Covered

• Filing Dates
• Increased Penalties
• WHO should receive a W-9
• WHO is responsible for the accuracy of W-9 information
• WHAT does "disregarded entity" mean
• WHAT is the importance of "tax classification"
• WHEN are W-9s due to Payees
• WHEN should W-9s be rejected & re-sent to Payees
• HOW can I avoid name & TIN mismatch problems that lead to backup withholding and B-Notices
• Verify TIN, EIN, SSN with IRS e-services
• Verify the correctness of W-9 information
• When to backup withhold and how
• Tips on avoiding IRS penalties and handling IRS B-Notices

Learning Objectives

• Identify processes for dealing with the Form W-9, TIN solicitation, and a discussion of the Form 1099-NEC vs. the 1099-MISC
• Recognize and apply policies for validating IRS Form W-9 and get record retention tips
• Identify strategies for dealing with Form W-9s when multiple names are provided, handling changes in payee information, validating exempt organization payees, and validating your W-9s using the IRS TIN Match Program
• Describe practices to capture key W-9 data points for use in subsequent 1099 reporting
• Recognize how to develop strategies for leveraging the W-9 in B-Notice situations
• Recognize how to pinpoint steps that should be taken to handle W-9s from problematic payees such as sole proprietors, single member LLCs, partnerships, LLCs owned by other entities, and corporations
• Identify backup withholding tips to make your job easier, including a detailed discussion of the Form 1099-NEC and 1099-MISC versus usage of Form 945

Level
Basic

Instructional Method
Group: Internet-based

NASBA Field of Study
Taxes (2 hours)

Program Prerequisites
None

Advance Preparation
None