IRS Penalty Notice Abatement and B-Notice Processing/Backup Withholding Strategies for 2025
Author: Steven D. Mercatante
| CPE Credit: |
2 hours for CPAs
1 hour Federal Tax Related for EAs and OTRPs
1 hour Federal Tax Law for CTEC |
Per the IRS Education Provider Standards this course must be COMPLETED by 12/31/2028 to receive credits. NOTE: Go to My Professional Profile in your CCH CPELink account settings to ensure your name, and PTIN number; matches your PTIN card
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 CPAs, 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 CPAs, 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.
Publication Date: September 2025
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
Learning Objectives
- Explain how to process IRS B-Notices
- Identify the difference between a First and Second B-Notice
- Explain the Backup Withholding process – including escrowing, and associated 1099-MISC/NEC and Form 945 reporting
- Identify penalty notice abatement strategies
- Explain the importance of reasonable cause and how to prove it when seeking to have an IRS penalty abated
- Identify the change Section 70433 of the July 2025 Tax Bill made to the 1099-MISC filing threshold
Level
Basic
Instructional Method
Self-Study
NASBA Field of Study
Accounting (1 hour)
Program Prerequisites
None
Advance Preparation
None
