W-9 &1099 Information Reporting Regulatory Update - 2025

Author: Miles Hutchinson

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

What are the rules regarding paying and IRS reporting on Independent Contractors? How do we avoid the IRS CP-2100 (B-Notices)? What if our vendor/payee claims exemption; must we obtain a W-9 anyway? What are the best practices for handling our information reporting obligations? How can we minimize risk of improper exemption claims by our payees and vendors? Get the answers to these and related questions to reduce your risk of huge penalties from the IRS.

Publication Date: November 2025

Designed For
Bank Managers, Compliance Officers, Information Reporting Officers, Tax Managers, CFOs, Controllers, Accounting Managers, Auditors, IT Managers, Compliance Managers, and Risk Managers.

Topics Covered

• IRS Tax Revenue Issues
• Basic guidelines for W-9 Disclosures and 1099 Reporting
• Backup Withholding
• Review of Form 1099-Misc & 1099-NEC
• P-Cards & Form 1099-K
• Electronic Transmission to Payees
• Electronic Submission to IRS
• Avoiding Penalties

Learning Objectives

• Identify rules requiring W-9 documentation and 1099 reporting
• Recognize how to establish the independent contractor relationship with the right documentation
• Recognize the rules and keep your company in compliance
• Describe how to ensure your records will stand the scrutiny of an IRS 3rd Party Documentation and Reporting audit
• Identify how to avoid the onerous penalties for noncompliance and build the best defense against the 972-CG Notice of Proposed Penalty Letter
• Identify the maximum 2025 penalty for willful disregard

Level
Update

Instructional Method
Self-Study

NASBA Field of Study
Taxes (2 hours)

Program Prerequisites
Basic knowledge of 1099 and W-9.

Advance Preparation
None