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.
Publication Date: November 2021
Designed For
If you are new to 1099 reporting, You supervise 1099 compliance and want to stay on top of changes in the law, or you have questions and would benefit from a refresher.
Topics Covered
- IRS Focus: The Tax Gap
- Now estimated at near One Trillion per year!
- The underreporting of business income by organizations like yours a key part of this
- Congress and the IRS both focused on closing the tax gap: thus we have seen information reporting requirements increase
- The IRS is cracking down heavily on noncompliant companies to decrease the gap
- This issue has been in the news
- Current proposals from the Federal Government portend the greatest increase in enforcement seen in decades
Learning Objectives
- Identify the Form 1099-MISC's trickiest boxes: rent, leases, prizes and awards, hotel payments, recognize which boxes to report attorney and settlement payments, decode what "damages" payments mean for AP purposes, identify the difference between box 6 and Form 1099-NEC box 1 medical service provider payments, discover when the reporting does not always follow the payment, determine which boxes 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
- Describe 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
- Differentiate IRC Sections and how they apply
- Identify which Form 1099 must be reported on when payments are made to hotels
- Recognize when medical service provider payments must be reported
- Recgonize what to do if you don't have the payee's TIN
Level
Basic
Instructional Method
Self-Study
NASBA Field of Study
Taxes (2 hours)
Program Prerequisites
None
Advance Preparation
None
Instructor
Steven D. Mercatante
Steven Mercatante is the principal and founder of TIR Consulting, LLC. He is a nationally recognized leader in tax reporting education and consulting on specialized compliance issues. He has conducted on-site consultation for corporate clients from across the world and led countless seminars and webinars for Convey Compliance Systems, IAPP, Balance Consulting, The Accounts Payable Network, Accounts Payable Now and Tomorrow, Progressive Business Conferences, The Center for Competitive Management, and more.
He is also a published author, with numerous articles published on tax and financial law, and he has authored and published a series of tax guides on topics such as: W-9/1099 & W-8/1042-S compliance and reporting, payment cards, U.S. State & Local Reporting, worker compensation issues, international tax compliance, and more.