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.
Per the IRS Education Provider Standards this course must be COMPLETED by 12/31/2029 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
Publication Date: August 2026
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
- Starter Question: How can we best set up an independent contractor or bank customer in our payment system to ensure compliance with the IRS reporting rules?
- Protocols for setting up new payees and vendors (ICs)
- When to require a Form W-9 v. Form W-4 v. Forms W-8
- Review the current Form W-9 (released March 2024, or newer if applicable)
- How to test the accuracy of the W-9 information with the IRS’s records – for free!
- Who and what you pay determines whether you must prepare Forms 1099 and the thresholds differ depending on the type of payment
- When and how to handle back-up withholding
- When signatures are required on Form W-9
- Update on the latest changes to the forms, deadlines and penalties
- When you must electronically file your information returns
- How to set up electronic reporting to your payees
- Form 1099-MISC and NEC– detailed guidelines for proper use and classification of diverse payments on these forms
- How Merchant Card reporting on Form 1099-K affects reporting on credit card payments – filing thresholds are shrinking
- How FATCA affects information reporting for U.S. persons
- Best practices for filing 1099s with the IRS – TIP: never file early with the IRS!
- The government wants to remove the exemptions – what this means to you
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
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
Instructor
Miles Hutchinson
Miles Hutchinson is a CGMA and experienced businessman with over 40 years in the field. He has been an auditor with PriceWaterhouseCoopers and the Chief Financial Officer of a $1 billion real estate development company. Miles is a professional speaker and consultant who has presented over 2,500 seminars and training sessions on a myriad of business and financial topics, like financial analysis and modeling, accounting, strategic planning, and compliance with the Sarbanes-Oxley Act. He is recognized as an expert in payroll and sales & use tax as well as financial modeling & analysis, business strategy and communications. He is the author of several useful accounting and tax tools.
His clients include, Abbott Labs, Bank of America, Boston Scientific, Citicorp, Corning, the FBI, the FDA, the Federal Reserve, GE, Pfizer, Siemens, US Marine Corps, and the US Army. Please visit his web sites to see how you can further benefit from his expertise.