When Is 1099 Back-Up Backup Withholding Required? (Currently Unavailable)

Author: Steven D. Mercatante

Per the IRS Education Provider Standards this course must be COMPLETED by 12/31/2024 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

IRS due diligence rules are more complicated than ever. Whether you are new or seeking an update this course will provide CPA’s, Accounts Payable, Payroll, and Tax professionals with plain English guidance to help break down IRS backup withholding and B-Notice situations. The program will discuss the solicitation process including solicitation using and analyzing Form W-9, annual solicitations, B-notices and solicitations in response to IRS notices, and what to do when the vendor does not provide a TIN or provides an incorrect TIN. It will also cover how the IRS TIN Match system matches names and numbers and how you can leverage this assistance in preparing submissions to prevent false positive or negative responses from the system. It will cover how to submit TINs for verification and what to do when the system indicates a mismatch between the name and number of the vendor. This includes discussing procedures the payer must follow in issuing B-Notices to payees as well as the establishment of procedures for proper administration of backup withholding.

Publication Date: May 2021

Designed For
If you struggle to understand when and how to 1099 backup withhold, your department has no few or no backup withholding procedures in place, or if you want to be prepared in case of audit.

Topics Covered

• What's new
• New ” 1099”MISC and 1099”NEC revamped again!
• The W”9: Name and TIN "Cheat Sheet"
• Form W”9 Solicitation Tips to Ensure You Capture Form 1099 Payee Data
• Your Payee Refuses to Provide Their TIN on the W”9 — Here's What To Do
• Using the IRS TIN Match Program to Clean Up Your Files Prior to Form 1099 Reporting
• TIN Match Program Tips
• Backup Withholding
• B”Notice Response Best Practices
• IRS Form 972”CG Proposed Penalty Notice and Reasonable Cause

Learning Objectives

• Identify the solicitation process including solicitation using and analyzing Form W-9, annual solicitations, B-notices and solicitations in response to IRS notices, and what to do when the vendor does not provide a TIN or provides an incorrect TIN
• Recognize how the IRS TIN Match system matches names and numbers and how you can leverage this assistance in preparing submissions to prevent false positive or negative responses from the system
• Describe what to do if your payee goes through a merger or is bought out during the year
• Differentiate which IRC Section that authorizes you to backup withhold and report accordingly if the payee's name and TIN is not provided
• Recognize what the IRS "eyeball test" allows you to do
• Identify which of your organization's employee's must be the first to sign up for the TIN Match Program under IRS rules
• Recognize what you must do in response to a First and Second B-Notice (CP2100) situation
• Identify 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