IRS Penalty Notice Abatement and B-Notice Processing/Backup Withholding Strategies for 2025

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, and process IRS Forms CP2100 and 972-CG.

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

• IRS CP2100 B-Notice breakdown: Why they come and what to do
• The role of the two-in-three-years rule for the first and second B-Notice
• Backup withholding dos and don’ts – learn how documentation and schedules influence year-end reporting
• Your best approach to processing an IRS penalty notice
• Learn the key elements in getting a penalty abated. We cover all the details in step-by-step fashion

Learning Objectives

• Discover how to process IRS B-Notices
• Learn the difference between a First and Second B-Notice
• Break down the Backup Withholding process – including a look at escrowing, and associated 1099-MISC/NEC and Form 945 reporting
• Get penalty notice abatement strategies
• Discover the importance of reasonable cause and how to prove it when seeking to have an IRS penalty abated

Level
Basic

Instructional Method
Group: Internet-based

NASBA Field of Study
Accounting (1 hour), Taxes (1 hour)

Program Prerequisites
None

Advance Preparation
None