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
Instructor
Steven D. Mercatante
Steven Mercatante is the principal and founder of TIR Consulting, LLC. He is a nationally recognized leader in tax reporting education and consulting on specialized compliance issues. He has conducted on-site consultation for corporate clients from across the world and led countless seminars and webinars for Convey Compliance Systems, IAPP, Balance Consulting, The Accounts Payable Network, Accounts Payable Now and Tomorrow, Progressive Business Conferences, The Center for Competitive Management, and more.
He is also a published author, with numerous articles published on tax and financial law, and he has authored and published a series of tax guides on topics such as: W-9/1099 & W-8/1042-S compliance and reporting, payment cards, U.S. State & Local Reporting, worker compensation issues, international tax compliance, and more.