Form 1099 & W9 Annual Update (Completed)

Date: Monday, November 23, 2020
Instructor: Miles Hutchinson
Begin Time:  12:00pm Pacific Time
1:00pm Mountain Time
2:00pm Central Time
3:00pm Eastern Time
CPE Credit:  2 hours for CPAs
2 hours Federal Tax Law Updates for EAs and OTRPs
2 hours Federal Tax Updates for CTEC

How can we best set up an independent contractor or bank customer in our payment system to ensure compliance with the IRS reporting rules?
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 payers – the 1099. This time consuming reporting obligation can be streamlined in a number of ways.

What are the rules regarding paying and IRS reporting on Independent Contractors? How do we avoid the IRS CP-2100 (B-Notices)? What if our vendor/payee claims exemption; must we obtain a W-9 anyway? What are the best practices for handling our information reporting obligations? How can we minimize risk of improper exemption claims by our payees and 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

  • Protocols for setting up new vendors (ICs)
  • When to require a Form W-9 v. Form W-4 v. Forms W-8
  • Review the current Form W-9 (released October 2018, or newer if applicable)
  • 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)
  • When and how to handle back-up withholding
  • When signatures are required on Form W-9
  • Update on the latest changes to the forms, deadlines and penalties
  • When you must electronically file your information returns
  • How to set up electronic reporting to your payees
  • Form 1099-Misc — detailed guidelines for proper use and classification of diverse payments on this form
  • How Merchant Card reporting on Form 1099-K affects your reporting on credit card payments
  • How FATCA affects information reporting for U.S. persons
  • 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 for various types of Forms 1099 including interest, dividends, PATR, real estate transactions, and the famous Form 1099-Misc
  • Recognize how to establish the independent contractor relationship with the right documentation
  • Recognize the rules and keep your company in compliance
  • Describe how to ensure your records 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

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