W-9, The Perfect Start to Perfect 1099's

1. Introduction
2. The Law - Learn it, Know it, Live it 00:01:18
3. What’s New In 1099 E-Filing - Big 1099/W-2 E-Filing Changes 00:12:33
4. What’s New In 1099 E-Filing - Steps to Using IRIS A2A Connection Point 00:14:19
5. Draft 2026 Form 1099-NEC 00:16:31
6. Draft 2026 Form 1099-MISC 00:28:11
7. A Note On Recent Proposed W-9 Changes 00:33:27
8. Name and Tin “Cheat Sheet” 00:49:43
9. Name and Tin “Cheat Sheet” Cont’d 00: 50:00
10. Validating W-9 Data - When to Get an Updated Form W-9  00:52:27
11. Validating W-9 Data - Identifying Your Payment: Exempt Payments 00:59:29
12. Validating W-9 Data - Identifying Your Payee: How to Know Who’s Who 01:00:13
13. Validating W-9 Data - U.S. Persons 01:01:37
14. Validating W-9 Data - Corporations 01:02:09
15. Validating W-9 Data - The LLC 01:03:04
16. Validating W-9 Data - The LLC as the Disregarded Entity 01:05:30
17. Validating W-9 Data - Tax Exempt Organization Search Tool 01:07:17
18. Validating W-9 Data: Watch Out For The Middleman 01:08:32
19. Cutting Down on Corrections: TIN Match Program Reminder - IRS TIN Match Program 01:12:58
20. Cutting Down on Corrections - Delegated Authority 01:14:08
21. Cutting Down on Corrections - Form 1099 Corrections –Reasons Why 01:14:41
22. Cutting Down on Corrections - Payer Mistake Tax Implications 01:16:39
23. Backup Withholding Tips - Proposed Penalties 01:18:01
24. Backup Withholding Tips - 1099 Reportable Payments 01:21:05
25. Backup Withholding Tips - Four Triggers 01:21:17
26. B-Notice Response Best Practices - Required Backup Withholding 01:22:36
27. B-Notice Response Best Practices - Reasons for B-Notices 01:23:09
28. B-Notice Response Best Practices - IRS Matching 01:27:12
29. B-Notice Response Best Practices - 1st Notice 01:28:21
30. B-Notice Response Best Practices - 2nd Notice 01:30:01
31. IRS Form 972-CG Proposed Penalty Notice and Reasonable Cause - IRS Notice 972-CG 01:33:16
32. IRS Form 972-CG Proposed Penalty Notice and Reasonable Cause - IRS Notice 972-CG Contents 01:34:06
33. IRS Form 972-CG Proposed Penalty Notice and Reasonable Cause - IRS Notice 972-CG- Responding 01:34:23
34. IRS Form 972-CG - Proving Reasonable Cause: An Overview - IRS Form 972-CG 01:36:06
35. Proposed Penalty Notice and Reasonable Cause - Proposed Penalties - 972-CG Penalty Waiver Request Letter 01:36:23
36. IRS Form 972-CG Proposed Penalty Notice and Reasonable Cause - Reasonable Cause and Written Guidance 01:37:23
37. Protect Yourself 01:39:32
38. Attendee Questions 01:40:40
39. Presentation Slides 01:45:27

• 

  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 [...]

  View Full Profile

• 147C Letter 01:30:43
• Artificial Intelligence (AI) 00:08:32
• Audit 00:05:46, 00:10:26, 01:00:29, 01:03:06
• Backup Withholding 00:03:58, 01:0:08, 01:27:01
• B-Notice 00:04:08, 00:08:23, 00:13:21, 00:43:12, 01:21:27, 01:23:13, 01:35:10
• C-Notice 01:21:30
• CP-2100 00:43:11, 01:25:02
• DBA -Doing Business As  00:37:39, 00:42:42, 01:06:23, 01:27:55
• Disregarded Entity 00:37:29
• D-Notice 01:21:31
• Due Diligence 00:02:20, 01:07:15, 01:25:10
• EIN 00:37:09, 00:50:14, 01:27:43
• Exempt 00:36:04, 00:59:42, 01:07:23
• Fair Labor Standards Act (FLSA) 00:20:26
• FATCA 00:35:54, 00:38:35
• FIRE - File Information Returns Electronically 00:12:45
• Form 1042-S 01:05:58
• Form 1099-DA 00:35:16
• Form 1099-MISC 00:01:21, 00:14:21, 01:15:05
• Form 1099-NEC 00:01:22, 00:13:08, 00:47:21
• Form 990 01:07:57
• Form W-2 00:31:57
• Form W-8 00:26:33, 01:01:3201:05:57
• Form W-9 00:01:18, 00:05:14, 00:10:00, 00:28:11, 00:33:43, 00:36:39, 00:52:36, 01:02:20, 01:14:56, 01:25:35
• Garnishment 01:10:36
• Independent Contractor 00:02:29, 00:25:15, 00:30:17, 01:10:49
• Information Returns Intake System (IRIS)  00:12:54
• Invoice 01:03:19
• IRC Section 3406(a) 00:03:56
• IRC Section 6041(a) 00:03:47
• IRC Section 6045 01:11:11
• IRC Section 6109(a)(2) 00:02:38, 00:03:27
• IRC Section 6724 00:07:54, 01:35:56
• IRS Notice 972CG 00:08:15, 01:18:23, 01:33:27
• Limited Liability Company (LLC) 00:37:34, 00:43:38, 00:55:21, 01:03:57, 01:27:56
• Minimum Wage 00:27:41
• Overtime 00:25:43, 00:29:30
• Reasonable Cause 00:07:52, 01:36:20
• Sole Proprietor 00:37:03, 00:49:54, 00:55:18, 01:27:54
• Tax Exempt Organization Search Tool  01:07:50
• Tax Gap 00:04:19
• TIN 00:02:28, 00:05:36, 00:37:46, 00:49:30, 00:53:21, 01:06:21, 01:13:56, 01:25:24
• TIN Match Program 01:12:58, 01:25:07
• Transaction 00:36:01
• Transmitter Control Code (TCC) 00:14:42
• Vendor 00:05:19, 00:18:37, 00:34:36, 00:40:56, 00:53:29, 01:06:1, 01:13:13, 01:16:49

147C Letter: The information on a 147C letter documents how an individual or business entity is filed with the Internal Revenue Service (IRS), and should match the information on business tax returns and 1099-K forms. The best way to request a 147C letter is to contact the IRS by phone

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)

C-Notice: Backup withholding notice from the IRS stating that the non-employee has understated income and is subject to backup withholding.

CP-2100: It is a notice that tells a payer that he or she may be responsible for backup withholding. It is accompanied by a listing of missing, incorrect, and/or not currently issued payee TINs. Largevolume filers will receive a CD or DVD data file CP2100, mid-size filers receive a paper CP2100, andsmall filers receive a paper CP2100A.

D-Notice: If you received an LT16 A/D notice, it's because he IRS is trying to collect unpaid taxes from you and/or their files show they're missing tax returns from you. It is essential that you take action in order to avoid potential enforcement action, which can include seizing your assets or wages. Enforcement action could also include the filing of a notice of federal tax lien, which could affect your credit score and ability to borrow.

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)

Due Diligence: Due diligence is a process or effort to collect and analyze information before making a decision or conducting a transaction so a party is not held legally liable for any loss or damage. The term applies to many situations but most notably to business transactions.

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

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.

FIRE - File Information Returns Electronically: The IRS FIRE system is the electronic network used to accept and process most types of filing forms. Technically, it stands for File Information Returns Electronically.

Fair Labor Standards Act (FLSA): The Fair Labor Standards Act of 1938 29 U.S.C. § 203 is a United States labor law that creates the right to a minimum wage, and "time-and-a-half" overtime pay when people work over forty hours a week. It also prohibits most employment of minors in "oppressive child labor".

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 W-2: Form W-2 is an Internal Revenue Service tax form used in the United States to report wages paid to employees and the taxes withheld from them. Employers must complete a Form W-2 for each employee to whom they pay a salary, wage, or other compensation as part of the employment relationship. - Wikipedia (https://en.wikipedia.org/)

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/)

Garnishment: A legal summons or warning concerning the attachment of property to satisfy a debt

IRC Section 3406(a): Requires that, under certain circumstances, including the payee's failure to provide a TIN, the payer must perform backup withholding.

IRC Section 6041(a): Provides that persons engaged in trade or business must report certain payments on an information return.

IRC Section 6045: Every person doing business as a broker shall, when required by the Secretary, make a return, in accordance with such regulations as the Secretary may prescribe, showing the name and address of each customer, with such details regarding gross proceeds and such other information as the Secretary may by forms or regulations require with respect to such business.

IRC Section 6109(a)(2): Requires that a payee provide a TIN to the payer when the payment will be reportable on an information return.

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/)

Information Returns Intake System (IRIS): The Information Returns Intake System (IRIS) Taxpayer Portal is a system that provides a no cost online. method for taxpayers to electronically file Form 1099 series. The Taxpayer Portal allows you to enter. data to create Forms 1099 by either keying in the information or uploading a .csv file.

Invoice: An invoice, bill or tab is a commercial document issued by a seller to a buyer, relating to a sale transaction and indicating the products, quantities, and agreed prices for products or services the seller had provided the buyer. Payment terms are usually stated on the invoice.

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.

Minimum Wage: The lowest wage paid or permitted to be paid specifically fixed by a legal authority or by contract as the least that may be paid either to employed persons generally or to a particular category of employed persons.

Overtime: Overtime is time and a half of what an employee earns for every hour worked over 40 in a workweek. The FLSA salary threshold is the minimum salary employers must pay employees for them to be exempt from overtime wages.

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.

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 Exempt Organization Search Tool: Tax Exempt Organization Search helps users find information about a tax-exempt organization’s federal tax status and filings.

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.

Transaction: In QuickBooks, a transaction type identifies what kind of transaction occurred, such as a customer transaction, bill payment or a bank transfer. When you submit a transaction, you type in a transaction code to represent it.

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.