Handling Changes to W-8 and W-9 (Currently Unavailable)

Author: Steven D. Mercatante

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.

Publication Date: November 2021

Designed For
If you are new to 1099/1042-S reporting, you supervise 1099 compliance and want to stay on top of changes in the law, or if you are a CPA and would benefit from more in depth training.

Topics Covered

• IRS Focus: The Tax Gap
• Penalty notice processing
• State reporting
• What's New: W-8 Changes Made In October!
• New W-8BEN
• Line 4 changes
• New line 9c
• Part III Line 14 changes
• Line 15 changes for the entity claiming certain treaty benefits and the requirement to explain the reasons the beneficial owner meets the terms of the treaty article
• New W-8ECI
• The W-9
• W-9/W-8 Validation For 1042/1042-S Filing
• The W-8EXP and W-8IMY: Same Forms, Trouble spots, Different Year
• W-9/W-8 Validation For 1042/1042-S Filing
• W-9/W-8 Data Validation Can Flow Together: Presumptions
• Must Have A W-9/W-8 Due Diligence Framework In Place Or Face Consequences
• W-9/W-8 Payee/Payment In Practice
• Who Is My Payee?
• W-8 and Purchase Invoices
• 1042-S Reportable Income
• Filing Form 1042/1042-S

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
• Recognize what to do if you do not have the payee's TIN
• Identify when you are required to use the Form W-9
• Describe who you may be dealing with if you receive a Social Security formatted looking number beginning with "9"
• Describe where service payments are sourced

Level
Basic

Instructional Method
Self-Study

NASBA Field of Study
Taxes (2 hours)

Program Prerequisites
None

Advance Preparation
None