Handling Recent Changes to Forms W-8 and W-9

1. Introduction
2. The Law - Learn it, Know it, Live it 00:01:11
3. What’s New In 1099 E-Filing - Big 1099/W-2 E-Filing Changes 00:10:31
4. What’s New In 1099 E-Filing - Using IRIS A2A Connection Point 00:12:12
5. Draft 2026 Form 1099-NEC 00:15:52
6. Draft 2026 Form 1099-MISC 00:28:49
7. Proposed W-9 Changes 00:30:29
8. Name and Tin “Cheat Sheet” 00:51:04
9. Name and Tin “Cheat Sheet” 00:51:30
10. Validating W-9 Data - When to Get an Updated Form W-9 00:53:30
11. Validating W-9 Data - Exempt Payments 00:56:52
12. Validating W-9 Data - Identifying Your Payee 01:00:27
13. Validating W-9 Data - U.S. Persons 01:02:47
14. Validating W-9 Data - Problem Payee 01:03:54
15. Validating W-9 Data - The LLC 01:05:36
16. Validating W-9 Data - The LLC as the Disregarded Entity 01:06:36
17. Validating W-9 Data - Tax Exempt Organization Search Tool 01:07:32
18. Validating W-9 Data: Watch Out For The Middleman 01:09:51
19. TIN Match Program - IRS TIN Match Program 01:11:01
20. TIN Match Program - Delegated Authority 01:11:43
21. W-8 Overview – Validate Carefully - The W-8BEN 01:12:22
22. W-8 Overview – Validate Carefully - The W-8BEN-E 01:19:38
23. W-8 Overview – Validate Carefully - W-8ECI 01:23:37
24. W-8 Overview – Validate Carefully - W-8IMY 01:26:29
25. W-9/W-8 Validation Is An Integrated Process 01:28:46
26. Must Have a Due Diligence Framework in Place or Face Consequences 01:27:33
27. Who is My Payee Non-U.S. Status Red Flags 01:29:12
28. Who is My Payee – U.S. or Non-U.S.? 01:30:41
29. Who is My Payee – Resident Alien Visas 01:31:23
30. Who is My Payee – Resident Aliens and Counting Days 01:34:29
31. Who is My Payee – Special Entity Rules 01:34:38
32. Wrap Up of General W-8 Validation Tips 01:35:03
33. Protect Yourself 01:40:03
34. Presentation Closing 01:43:22

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  Steven 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 web [...]

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• Artificial Intelligence (AI) 00:06:43, 01:02:24
• Audit 00:05:49, 00:18:51, 00:32:56, 00:46:15, 01:02:16, 01:33:47
• Backup Withholding 00:54:03
• B-Notice 00:13:29, 00:18:49, 00:40:59, 00:54:29, 01:36:19
• DBA -Doing Business As 00:39:44, 00:43:47, 00:52:43
• Disregarded Entity 00:43:09, 00:49:40, 00:52:42
• EIN 00:06:40, 00:40:29, 00:43:45, 00:52:57, 01:30:15
• Exempt 00:33:49, 01:07:34, 01:32:
• Expatriate 01:32:00
• Expense Reimbursement 00:19:16
• FATCA 00:42:48, 01:19:58
• Federal Insurance Contributions Act (FICA) 01:32:13
• Form 1042-S 00:07:21, 01:03:22, 01:30:38
• Form 1099-DA 00:33:57
• Form 1099-MISC 00:19:54, 00:36:26
• Form 1099-NEC 00:19:51, 00:36:23
• Form 8233 01:36:53
• Form W-8 00:07:20, 00:37:26, 01:26:49, 01:36:25
• Form W-9 00:05:56, 00:30:32, 00:33:03, 00:46:01, 01:07:49, 01:27:30, 01:36:16
• General Services Administration (GSA) 00:19:22
• Green Card 01:31:11
• Independent Contractor 00:07:05, 00:39:57, 01:37:06
• IRS Notice 972CG 00:18:43
• ITIN 01:30:20
• Limited Liability Company (LLC) 00:06:37, 00:52:36
• Nonresident Alien (NRA) 00:01:4100:07:10
• Per Diem 00:19:16
• Reasonable Cause 00:54:07, 01:40:39
• Resident Alien 00:01:40, 00:07:15, 01:30:28
• Sole Proprietor 00:39:41, 00:43:50, 00:52:44
• Tax Gap 00:03:47
• TIN 00:18:41, 00:51:09
• TIN Match Program 00:40:52
• Transmitter Control Code (TCC) 00:12:10
• Vendor 00:01:43, 00:06:35, 00:13:49, 00:21:41, 00:46:02, 01:15:05
• W-8BEN 01:16:59
• W-8BEN-E  01:17:01
• W-8ECI 01:23:50
• W-8EXP 01:26:50
• W-8IMY 01:25:32

Artificial Intelligence (AI): Artificial intelligence is intelligence demonstrated by machines, as opposed to the natural intelligence displayed by humans or animals.

Audit: A formal examination of an organization's or individual's accounts or financial situation

B-Notice: A notice from the IRS stating that one or more tax ID numbers were missing from a 1099 or do not match the IRS records.

Backup Withholding: Backup withholding is the tax that is levied on investment income, at an established tax rate, as the investor withdraws it. Backup withholding helps to ensure that government tax-collecting agencies (such as the IRS or Canada Revenue Agency) will be able to receive income taxes owed to them from investors' earnings. (www.investopedia.com)

DBA -Doing Business As: Sometimes it makes sense for a company to do business under a different name. To do this, the company has to file what's known as a DBA, meaning "doing business as." A DBA is also known as a "fictitious business name," "trade name," or "assumed name."

Disregarded Entity: A disregarded entity refers to a business entity with one owner that is not recognized for tax purposes as an entity separate from its owner. A single-member LLC ( “SMLLC”), for example, is considered to be a disregarded entity. (www.pntax.com)

EIN: The Employer Identification Number, also known as the Federal Employer Identification Number or the Federal Tax Identification Number, is a unique nine-digit number assigned by the Internal Revenue Service to business entities operating in the United States for the purposes of identification.

Exempt : Exempt employee is a term that refers to a category of employees set out in the Fair Labor Standards Act. They do not receive overtime pay, nor do they qualify for the minimum wage

Expatriate: An expatriate (often shortened to expat) is a person residing in a country other than their native country. ... However, the term 'expatriate' is also used for retirees and others who have chosen to live outside their native country. Historically, it has also referred to exiles.

Expense Reimbursement: Expense reimbursement is a method for paying employees back when they spend their own money on business-related expenses. These expenses generally occur when an employee is traveling for business but can occur in other work-related situations. (www.thebalancecareers.com)

FATCA: FATCA was enacted in 2010 by Congress to target non-compliance by U.S. taxpayers using foreign accounts. FATCA requires foreign financial institutions (FFIs) to report to the IRS information about financial accounts held by U.S. taxpayers, or by foreign entities in which U.S. taxpayers hold a substantial ownership interest. (www.treasury.gov). FACTA (Fair and Accurate Credit Transactions Act) is an amendment to FCRA (Fair Credit Reporting Act ) that was added, primarily, to protect consumers from identity theft. The Act stipulates requirements for information privacy, accuracy and disposal and limits the ways consumer information can be shared.

Federal Insurance Contributions Act (FICA): The Federal Insurance Contributions Act is a United States federal payroll contribution directed towards both employees and employers to fund Social Security and Medicare—federal programs that provide benefits for retirees, people with disabilities, and children of deceased workers.

Form 1042-S: Form 1042-S is used to report amounts paid to foreign persons (including persons presumed to be foreign) who are subject to income tax withholding. For an individual taxpayer, Form 1042-S is a document provided to you (and the IRS) by the payer of the income reported.

Form 1099-DA: This form is specifically designed to handle the reporting for cryptocurrency and digital assets.

Form 1099-MISC: The Form 1099-MISC is an Internal Revenue Service (IRS) tax return document used to report miscellaneous payments made to nonemployee individuals, such as independent contractors, during the calendar year. (www.shrm.org)

Form 1099-NEC: In the context of 1099 tax filing, NEC stands for “Nonemployee Compensation” (the first letters of the three words None, Employee and Compensation). Most tax payers recognize NEC as box 7 on Form 1099-MISC. NEC is used to report income paid to independent-contractors / the-self-employed (referred to as 1099 employees for simplification purposes). So, while employers report income that gets paid to employees on Box 1 (Wages, tips, other compensation) of the W2 form, payers report income that gets paid to none-employees on Box 7 (NEC) of the 1099-MISC form. As an individual, if you received form 1099-MISC instead of Form W-2 then the payer did not consider you an employee and did not withhold income tax or social security and Medicare tax.

Form 8233: IRS Form 8233 must be completed when a non U.S. citizen is claiming tax treaty exemption from income taxes for income received for services provided as an independent contractor.

Form W-8: Form W-8 is filled out by foreign entities (citizens and corporations) in order to claim exempt status from certain tax withholdings. The form is used to declare an entity's status as non-resident alien or foreign national who works outside of the United States.

Form W-9: Form W-9 (officially, the "Request for Taxpayer Identification Number and Certification") is used in the United States income tax system by a third party who must file an information return with the Internal Revenue Service (IRS). It requests the name, address, and taxpayer identification information of a taxpayer (in the form of a Social Security Number or Employer Identification Number). - Wikipedia (https://en.m.wikipedia.org/)

General Services Administration (GSA): The General Services Administration is an independent agency of the United States government established in 1949 to help manage and support the basic functioning of federal agencies.

Green Card: A Green Card, also known as a Permanent Resident Card, is an identification card issued by USCIS (.gov) to foreign nationals who have been granted lawful permanent resident status in the United States. It serves as proof that the holder is authorized to live and work permanently in the U.S. While the physical card has an expiration date (usually 10 years), the underlying status as a lawful permanent resident does not automatically expire.

ITIN : An Individual Taxpayer Identification Number is a United States tax processing number issued by the Internal Revenue Service. It is a nine-digit number that begins with the number 9, and the 4th and 5th digits, also known as second section, range from 70 to 88, 90 to 92 and 94 to 99.

Independent Contractor: An independent contractor is a person or entity contracted to perform work or provide services to another entity as a non-employee. As a result, independent contractors must pay their own Social Security and Medicare taxes. - Investopedia (https://www.investopedia.com/)

Limited Liability Company (LLC): An LLC is a corporate structure where members cannot be held accountable for the company’s debts or liabilities. This can shield business owners from losing their entire life savings if, for example, someone were to sue the company. Can be a single member (much like a sole proprietor) or a multi-member. It shares certain traits of both corporations as well as partnerships or sole proprietorships. It is not a corporation.

Nonresident Alien (NRA): This income is taxed at a flat 30% rate, unless a tax treaty specifies a lower rate. Nonresident aliens must file and pay any tax due using Form 1040NR, U.S. Nonresident Alien Income Tax Return or Form 1040NR-EZ, U.S. Income Tax Return for Certain Nonresident Aliens with No Dependents.

Per Diem: (Latin for "per day" or "for each day") or daily allowance is a specific amount of money an organization gives an individual, often an employee, per day to cover living expenses when traveling for work. - Wikipedia (https://en.wikipedia.org)

Reasonable Cause : Reasonable cause is based on all the facts and circumstances in your situation. The IRS will consider any reason which establishes that you used all ordinary business care and prudence to meet your federal tax obligations but were nevertheless unable to do so.

Resident Alien : A resident alien is a foreign person who is a permanent resident of the country in which he or she resides but does not have citizenship. To fall under this classification in the United States, a person needs to either have a current green card or have had one in the previous calendar year.

Sole Proprietor: A business that legally has no separate existence from its owner. The sole proprietorship is the simplest business form under which one can operate a business. The sole proprietorship is not a legal entity. It simply refers to a person who owns the business and is personally responsible for its debts.

TIN: A Taxpayer Identification Number is an identifying number used for tax purposes in the United States and in other countries under the Common Reporting Standard. In the United States, it is also known as a Tax Identification Number or Federal Taxpayer Identification Number.

TIN Match Program: TIN Matching is part of a suite of Internet-based pre-filing e-services that allows “authorized payers” the opportunity to match 1099 payee information against IRS records prior to filing information returns.

Tax Gap: The gross tax gap is the difference between true tax liability for a given tax year and the amount that is paid on time. It is comprised of the nonfiling gap, the underreporting gap, and the underpayment (or remittance) gap.

Transmitter Control Code (TCC): The Transmitter Control Code (TCC) is an identifier that the IRS uses to distinguish different electronic filing companies. It's necessary when you need to file for a correction. Getting a TCC depends on how you file your 1099 forms

Vendor: A vendor is a person or business that supplies goods or services to a company. Another term for the vendor is the supplier. In many situations, a company presents the vendor with a purchase order stating the goods or services needed, the price, delivery date, and other terms.

W-8BEN: Form W8-BEN, Certificate of Foreign Status of Beneficial Owner for U.S. Tax Withholding, is used by a foreign person to establish both foreign status and beneficial ownership, and to claim income tax treaty benefits with respect to income other than compensation for personal services. Give Form W-8 BEN to the withholding agent or payer if you are a foreign person and you are the beneficial owner of an amount subject to withholding. Submit Form W-8 BEN when requested by the withholding agent or payer whether or not you are claiming a reduced rate of, or exemption from, withholding.

W-8BEN-E: W-8BEN-E is an important tax document which allows businesses operating outside of the U.S. to claim tax exemption on U.S.-sourced income. The official document title is Certificate of Status of Beneficial Owner for United States Tax Withholding and Reporting (Entities).

W-8ECI: Form W-8ECI is the Certificate of Foreign Person's Claim for Exemption From Withholding on Income Effectively Connected With the Conduct of a Trade or Business in the United States. You must give Form W-8 ECI to the withholding agent or payer if you are a foreign person and you are the beneficial owner of U.S. source income that is (or is deemed to be) effectively connected with the conduct of a trade or business within the United States.

W-8EXP: A foreign government must provide Form W-8EXP to establish eligibility for exemption from withholding for payments exempt from tax under section 892 or for purposes of establishing its status as an exempt beneficial owner.

W-8IMY: This form may serve to establish foreign status for purposes of sections 1441, 1442, and 1446. The W-8IMY is used by an intermediary, a withholding foreign partnership, a withholding foreign trust, or flow-through entity.