Handling Changes to W-8 and W-9 (Completed)

Date: Monday, November 2, 2020
Instructor: Steven D. Mercatante
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 Related for EAs and OTRPs
2 hours Federal Tax Law for CTEC

IRS Forms W-8 and W-9 requires organizations like yours to collect very specific information about your payees. Besides regulating withholding, payers must make sure that the forms are current, complete and accurate. How can you ensure a proper form that will not subject your company to penalties, interest or tax?

In this course, industry expert and corporate tax attorney Steven D. Mercatante Esq. takes a look some of the more common problems experienced by CPA’s, accounts payable, and tax departments related documenting and validating payee information using the IRS Forms W-8 and W-9. He not only identifies the issues, but offers solutions and best-practices for addressing them.

Those making certain payments to non-employees must regularly deal with Forms W-9, W-8 or 8233, detailing specific information about the payee. Beyond regulating withholding, payers must make sure that the forms are current, complete and accurate. How can you ensure a proper form that will not subject your company to penalties, interest or tax? This course will help you ensure proper forms that will not subject your company to penalties, interest or tax.

Topics Covered

  • Filing Dates
  • Increased Penalties
  • WHO should receive a W-9 versus a W-8
  • WHO is responsible for the accuracy of W-8/W-9 information
  • WHAT does "disregarded entity" mean
  • WHAT is the importance of "tax classification"
  • WHEN should W-8 or W-9's be rejected & re-sent to Payees
  • HOW can I avoid name & TIN mismatch problems that lead to backup withholding and B-Notices
  • HOW to accurately acquire information from payees
  • When you need and do not need to collect a Form W-9
  • When to use each form W-8: Scenarios to consider
  • Discover how the latest changes can affect your business
  • Data points to capture from Forms W-8: Ensure compliance
  • Form W-8 & W-9 red flags: Spot them before it's too late
  • Keys to effectively validate and review your forms
  • Advantages of IRS e-services
  • 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 what's new for Form W-9/W-8 due diligence rules
  • Describe the latest strategies for validating IRS Forms W-9, W-8, and 8233
  • Recognize how to develop best practices strategies for backup withholding (including rules and determining your deposit schedule)
  • Identify Form W-9 do's and don'ts: including tips on validating Form W-9's when multiple names are provided, handling undocumented payees, service payments that require the reporting of a related good, and validating exempt organization payees
  • Recognize and apply proven techniques for handling payee treaty benefit requests on Forms W-8 and the steps to validate foreign TIN's
  • Identify when to use each form W-8: Scenarios to consider
  • Recognize best practices for validating payees from U.S. possessions
  • Describe key data points to capture from Forms W-8/W-9 and ensure compliance with IRS reasonable cause regulations
  • Identify how to spot Form W-8 & W-9 red flags before it's too late
  • Identify how to document & validate sole proprietors, single member LLC's, partnerships, LLC's owned by other entities, S-Corps, and more Create processes for dealing with recent IRS changes to the Form W-9

Level
Basic

Instructional Method
Group: Internet-based

NASBA Field of Study
Taxes (2 hours)

Program Prerequisites
None

Advance Preparation
None

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