Form 1099 MISC Explained (Completed)

Form 1099 filing season is more intense than ever. Whether you are new or seeking an update this course will provide Accounts Payable, Payroll, and Tax with plain English guidance to help minimize 1099-NEC and 1099-MISC mistakes while breaking down the toughest 1099 payee and payment reporting situations as part of an in depth box-by-box review of the Form 1099-MISC.

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

The new Form 1099-NEC and revamped Form 1099-MISC are the most common information return businesses, estates, trusts, colleges, universities, non-profits, and others are required to file for payments made to non-employees. These are also the Forms 1099 that most commonly has errors identified by the IRS. In this course you will learn what can you do NOW to prepare the Form 1099-NEC and Form 1099-MISC while avoiding notices of error from the IRS via developing best practices and exercising due diligence collecting and validating data to be included on the Forms 1099-NEC and 1099-MISC.

At the completion of this course you will have the tools necessary to evaluate the W9 and prepare both the Form 1099-NEC and Form 1099-MISC with all the boxes properly completed.

Topics Covered

• Review W-9 for Accuracy & Completeness
• Match W-9 SSN, EIN, TIN to IRS records
• Payees Who Should Receive a 1099-MISC versus a 1099-NEC
• Form 1099-MISC box-by-box tips and a detailed overview of the 1099-NEC's all-important box 1
• Changes in the law, including how it is the 1099-NEC impacts the 1099-MISC
• What name and EIN/SSN goes on the 1099-MISC?
• How do I know what amount goes in which box?
  • Example: Box 3 1099-MISC, Other Income, versus Box 1 Form 1099-NEC, Non-Employee Compensation
  • Example: Box 1 Form 1099-NEC, Non-Employee Compensation Paid to Attorneys or Box, 10 Form 1099-MISC , Gross Proceeds Paid to an Attorney
  • Example: Box 6 Form 1099-MISC, Medical and Health Care Payments versus Box 1 Form 1099-NEC

Learning Objectives

• Identify the Form 1099-MISC's trickiest boxes given the release of the 1099-NEC, dramatic modifications to the 1099-MISC, and new changes in the law rent, leases, prizes and awards, hotel payments, when to report freight payments, recognize which 1099-NEC versus 1099-MISC boxes to report attorney and settlement payments, decode what "damages" payments mean for AP purposes
• Differentiate between box 6 and 1099-NEC box 1 medical service provider payments, discover when the reporting does not always follow the payment, determine which forms to report non-qualified deferred compensation
• Identify W-9 document validation best practices with a focus on situations when multiple names are provided, handling undocumented payees, exempt organization payees, and IRS TIN Match Program best practices
• Identify categories of payees and payments that are both reportable and not reportable, plus identify service payments that also require the reporting of a related good
• Discover recent 1099-MISC changes including what the new Form 1099-NEC means for 1099-MISC reporting
• Recognize how to identify the reportable payee when you pay sole proprietors, LLCs, payee's merged or bought by another, S-Corps, agents, or middlemen

Level
Basic

Instructional Method
Group: Internet-based

NASBA Field of Study
Taxes (2 hours)

Program Prerequisites
None

Advance Preparation
None