1099 Reporting Payments for Middlemen, Agents, Liens and Garnishments

Publication Date: October 2025

Topics Covered

• Which 1099 to use and watch out for key trouble spots on the most commonly filed Forms 1099
• W-9 document validation best practices with a focus on situations when multiple names are provided, handling undocumented payees, exempt payees, and best practices for handling reporting when multiple parties are involved in the transaction
• Target categories of payees and payments that can lead to 1099 reporting when the reporting does not necessarily follow the check
• Receive tips on recent 1099 changes
• Tricky situations involving identification of the beneficial owner of the income for 1099 reporting purposes
• Determine when a garnishment or lien payment made to a court, or an attorney is reportable and to whom

Learning Objectives

• Recognize which 1099 to use and watch out for key trouble spots on the most commonly filed Forms 1099
• Identify difficult payment situations involving multiple parties
• Identify either who should report the payment or to whom you should report the payment
• Recognize if your 1099 validation and reporting procedures are not set up properly to help in identifying the beneficial owner of the income and to whom you should report
• Identify the section of the law that authorizes you to backup withhold and report accordingly on Form 1099 if the payee's name and TIN is not provided
• Identify when you are required to use the Form W-9
• Identify the name that should be on the Form 1099-MISC if the vendor is a "disregarded entity"
• Identify why the beneficial owner of the income is the key in multi-party transactions and associated reporting

Level
Basic

Instructional Method
Self-Study

NASBA Field of Study
Taxes (2 hours)

Program Prerequisites
None

Advance Preparation
None