On Demand Webinar

1. Introduction
2. Agenda 00:01:17
3. What’s New: What’s New: 1099 E-Filing Changes 00:04:15
4. 1099-NEC 00:22:55
5. The Form 1099-NEC - An Overview - Reportable Payments 00:28:17
6. 1099-MISC 00:32:07
7. The Form 1099-MISC - An Overview - Boxes 1, 2, 3, 6, and 10 00:36:04
8. 1099 Reporting and Due Diligence Starts With The W-9 00:41:48
9. The W-9: Name and TIn “Cheat Sheet” 00:47:50
10. The W-9: Name and TIn “Cheat Sheet” (Cont’d) 00:48:45
11. 1099 Due Diligence And The W-9 - When To Get An Updated Form W-9 00:50:14
12. 1099 Due Diligence And The W-9 - Payee Refuses to Provide a TIN 00:53:49
13. Validating Data - Identifying Your Payment: Exempt Payments 00:54:25
14. Validating Data- Identifying Your Payee 00:55:24
15. Validating Data - U.S. Persons 00:56:17
16. Validating Data - W-9 Red Flags for Non-U.S. Payees 00:56:55
17. Validating Data - Problem Payees 01:00:25
18. Validating Data - The LLC 01:01:28
19. Validating Data - The LLC as the Disregarded Entity 01:02:53
20. Validating Data - The Exempt Organization 01:03:40
21. Validating Payee Data - TIN Match Program 01:05:07
22. Validating Payee Data - TIN Match Program - Form W-9 and Vendors 01:06:56
23. Validating Payee Data - TIN Match Program - Reducing Corrections 01:07:33
24. Validating Payee Data - TIN Match Program - Delegated Authority 01:08:56
25. Watch Out For The Middleman 01:09:05
26. Backup Withholding Tips 01:11:25
27. Backup Withholding Tips - Four Triggers 01:13:10
28. Backup Withholding Tips - B-Notice 01:13:36
29. Correction Tips - Reasons Why 01:14:10
30. Correction Tips - Payer Mistake 01:19:34
31. Correction Tips - Proposed Penalties 01:20:55
32. B-Notice Response Best Practices 01:22:26
33. B-Notice Response Best Practices Cont’d 01:28:04
34. B-Notice Response Best Practices - 1st Notice 01:29:26
35. B-Notice Response Best Practices - 2nd Notice 01:30:54
36. B-Notice Response Best Practices - Due Diligence 01:32:56
37. B-Notice Response Best Practices - Final Thoughts 01:36:53
38. Protect Yourself 01:37:46
39. Questions and Answers 01:40:49
40. Presentation Closing 01:42:53

• 147C Letter 01:32:25
• Audit 00:02:52, 00:47:43, 00:51:31, 00:55:33
• Backup Withholding 00:05:09, 00:26:46, 00:28:15, 00:42:42, 00:51:06, 01:03:40, 01:11:29, 01:29:32
• B-Notice 00:02:23, 01:05:39, 01:22:28
• CP-2100 01:25:39
• CP-2100-A 01:25:40
• DBA -Doing Business As 00:44:02
• Disregarded Entity 00:44:14, 01:
• Due Diligence 00:04:25
• EIN 00:48:27, 00:58:04
• Exempt 01:03:47
• FATCA 00:32:41, 00:33:25, 00:42:28
• FIRE - File Information Returns Electronically 00:11:53, 00:15:10, 01:17:24
• Form 1042 00:08:33, 00:11:26
• Form 1042-S 00:08:34. 00:11:27, 00:56:08
• Form 1099-B 01:05:07
• Form 1099-DIV 01:05:07
• Form 1099-INT 01:05:07
• Form 1099-K 00:55:03, 01:05:07
• Form 1099-MISC 00:10:57, 00:23:13, 00:32:07, 01:05:07, 01:10:27
• Form 1099-NEC 00:11:00, 00:23:10, 00:33:39, 01:05:07, 01:12:50
• Form 1099-OID 01:05:07
• Form 1099-PATR 01:05:07
• Form 1099-R 00:31:13
• Form 945 01:13:05
• Form 990 01:04:03
• Form W-8 00:56:55
• Form W-9 00:05:27, 00:27:06, 00:41:54, 00:50:17, 01:03:36, 01:07:05, 01:31:08
• Independent Contractor 00:23:25
• Inflation Reduction Act Of 2022 01:23:07
• Information Returns Intake System (IRIS) 00:15:40, 01:17:25
• IRC Section 3406(a) 00:05:08, 01:11:31
• IRC Section 6041(a) 00:05:05
• IRC Section 6109(a)(2) 00:05:04, 00:42:21
• IRC Section 6724 00:51:26
• IRS Notice 972CG 01:07:33
• ITIN 00:56:47
• Limited Liability Company (LLC) 00:44:25, 00:52:23, 01:00:28
• Nonresident Alien (NRA) 00:08:52, 00:59:25
• Reasonable Cause 00:51:23, 01:07:49, 01:25:18
• Resident Alien 00:56:22
• Sole Proprietor 00:44:24, 00:52:09
• Substantial Presence Test (SPT) 00:56:34
• Tax Exempt Organization Search Tool 01:03:54, 01:15:01
• TIN 00:27:05, 00:42:26,  00:53:51, 01:03:34, 01:05:28, 01:14:46
• TIN Match Program 01:05:20, 01:07:10, 01:14:51
• Transmitter Control Code (TCC) 00:11:36, 00:14:33, 00:17:56, 01:17:28
• Unclaimed Property 00:06:33
• Vendor 00:01:58, 00:07:21, 00:12:03, 00:15:23, 00:27:40, 00:34:20, 00:52:39, 01:05:29, 01:14:25, 01:30:58

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

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)

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.

CP2100-A: It is a notice that tells a payer that he or she may be responsible for backup withholding. It isaccompanied 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.

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.

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-DIV : Form 1099-DIV: Dividends and Distributions is an Internal Revenue Service (IRS) form sent to investors who receive distributions from any type of investment during a calendar year. Investors can receive multiple 1099-DIVs. Each Form 1099-DIV should be reported on an investor's tax filing.

Form 1099-INT: Form 1099-INT is the IRS tax form used to report interest income. The form is issued by all payers of interest income to investors at year end and includes a breakdown of all types of interest income and related expenses. Payers must issue Form 1099-INTs for any party to whom they paid at least $10 of interest during the year.

Form 1099-K: A payment settlement entity (PSE) must file Form 1099-K for payments made in settlement of reportable payment transactions for each calendar year. A PSE makes a payment in settlement of a reportable payment transaction, that is, any payment card or third party network transaction, if the PSE submits the instruction to transfer funds to the account of the participating payee to settle the reportable payment transaction.

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 1099-OID: Form 1099-OID is a tax form intended to be submitted to the Internal Revenue Service by the holder of debt instruments which were discounted at purchase to report the taxable difference between the instruments' actual value and the discounted purchase price.

Form 1099-PATR: File Form 1099-PATR, Taxable Distributions Received From Cooperatives, for each person to whom the cooperative has paid at least $10 in patronage dividends and other distributions described in section 6044(b), or from whom you withheld any federal income tax under the backup withholding rules regardless of the amount of the payment.

Form 1099-R: Form 1099-R is a tax form from the Internal Revenue Service (IRS) for reporting distributions from annuities, profit-sharing plans, retirement plans, IRAs, insurance contracts, or pensions.

Form 945: IRS Form 945 is titled Annual Return of Withheld Federal Income Tax. Form 945 is used to report withheld federal income tax from nonpayroll payments, including distributions from qualified retirement plans.

Form 990 : Form 990 (officially, the "Return of Organization Exempt From Income Tax") is a United States Internal Revenue Service form that provides the public with financial information about a nonprofit organization. It is often the only source of such information.

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-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/)

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.

IRC Section 6724: I.R.C. § 6724(a) Reasonable Cause Waiver — No penalty shall be imposed under this part with respect to any failure if it is shown that such failure is due to reasonable cause and not to willful neglect.

IRS Notice 972CG: The IRS started mailing 972CG penalty notices in July 2013 regarding 1099's with missing or incorrect TIN/Name Combinations. A 972CG is a NOTICE OF PROPOSED CIVIL PENALTY. A simple way to prevent this costly penalty is to verify that your information is correct prior to filing.

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/)

Inflation Reduction Act Of 2022: The Inflation Reduction Act will protect Medicare recipients from catastrophic drug costs by phasing in a cap for out-of-pocket costs and establishing a$35 cap for a month's supply of insulin. And, as an historic win, Medicare will be able to negotiate prices for high-cost drugs for the first time ever.

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.

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.

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.

Substantial Presence Test (SPT) : The Substantial Presence Test (SPT) is a criterion used by the Internal Revenue Service (IRS) in the United States to determine whether an individual who is not a citizen or lawful permanent resident in the recent past qualifies as a "resident for tax purposes" or a "nonresident for tax purposes"; it is a form of physical presence test. The SPT should be used in conjunction with the Green Card Test (the criterion that the individual possessed a valid Green Card at any time of the year). An individual who satisfies either one or both of these tests is treated as a resident for tax purposes.

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.

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

Unclaimed Property: Unclaimed property (sometimes referred to as abandoned) refers to accounts in financial institutions and companies that have had no activity generated or contact with the owner for one year or a longer period. Common forms of unclaimed property include savings or checking accounts, stocks, uncashed dividends or payroll checks, refunds, traveler's checks, trust distributions, unredeemed money orders or gift certificates (in some states), insurance payments or refunds and life insurance policies, annuities, certificates of deposit, customer overpayments, utility security deposits, mineral royalty payments, and contents of safe deposit boxes.

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.