When Is 1099 Backup Withholding Required

Author: Steven D. Mercatante

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

Having a good firm understanding of the basics of 1099 backup withholding is critical. Too often, when responsibility for 1099 issues like backup withholding are assigned to an experienced accounting or accounts payable professional, it is assumed they can handle it – even though they’ve never done it before. They are not given any training to understand the basics, never mind deal with the onslaught of changes that come each fall. And let’s face it; 1099 reporting and backup withholding is not intuitive!

This course is designed to help everyone – both newcomers and seasoned pros understand what 1099 backup withholding is, why it is important, and what could happen to your company if it is not done. In this information-packed program you’ll gain a broad understanding of Form 1099 backup withholding, with special focus on the Forms 1099-NEC and 1099-MISC, the most commonly used forms for 1099 reporting withholding. You’ll learn the key elements needed to comply with IRS requirements and discover how best to respond to the IRS.

Publication Date: June 2025

Topics Covered

• 1099-NEC
• 1099-MISC
• It All Starts with the W-9
• The W-9: Name and Tin "Cheat Sheet"
• The W-9 and Avoiding Withholding
• The W-9 and Dealing with Withholding
• Validating Data, Avoiding Withholding and Problem Payees
• Validating Payee Data and Avoiding Withholding/B-Notices Through the TIN Match Program
• Backup Withholding Tips
• B-Notice Response Best Practices

Learning Objectives

• Identify the key elements that make for successful 1099 backup withholding
• Explain what you are required to do to backup withhold
• Recognize when backup withholding must be performed
• Identify the right information you need from your payee to properly backup withhold
• Explain how to use the W-9 to collect the correct information and verify your attempts to avoid backup withholding
• Identify when you are required to obtain a signed W-9
• Explain how to use the IRS TIN Matching Program to help you ensure the information you have is correct

Level
Basic

Instructional Method
Self-Study

NASBA Field of Study
Taxes (2 hours)

Program Prerequisites
None

Advance Preparation
None