On Demand Webinar

New Form 1099-NEC

Please see below for additional instructions and information regarding this program.

Webinar Details$219

This webcast provides accounts payable with plain English explanations breaking down the toughest 1099 due diligence situations for 2020 - featuring a comprehensive box-by-box review of both the new 2020 Form 1099-MISC and 1099-NEC:

Agenda:

• Get tips for addressing how the new IRS Forms 1099-NEC and 1099-MISC impact your in-year due diligence for 2020

• Break down the new Form 1099-MISC and NEC trickiest compliance situations: rent, leases, prizes and awards, hotel payments, freight payments, attorney and settlement payments between the two forms, backup withholding, where medical service provider payments are now going, discover when the reporting does not follow the payment, where to report non-qualified deferred compensation, determine when payments are 1099-S, 1099-INT, and W-2 reportable instead of on the 1099-MISC or 1099-NEC, and more...

• Learn how to reshape your vendor validation tasks for 2020

• Discover how to differentiate between payments that are now 1099-NEC reportable versus those that are 1099-MISC reportable

• Identify key elements of the IRS due diligence and reasonable cause rules related to these new forms and recognize how to identify the reportable payee when you pay sole proprietors, LLCs, payee's merged or bought by another, S-Corps, agents, liens/garnishments, and other middlemen.

• Live question and answer with our tax expert!

Learning Objectives:

• Learn to break down the new Form 1099-MISC and NEC trickiest compliance situations

• Learn how to reshape your vendor validation tasks for 2020

• Learn how to differentiate between payments that are now 1099-NEC reportable versus those that are 1099-MISC reportable

  1. Introduction
  2. What’s New  - 00:01:10
  3. What’s New - 2020 Form 1099 NEC - 00:07:56
  4. What’s New - The 2020 Form 1099-NEC - Reportable Payments 0010:55
  5. What’s New - The 2020 Form 1099-NEC - Reportable Payments and Box 1 00:12:38
  6. What’s New - The 2020 Form 1099-NEC - Non-Reportable Payments 00:18:44
  7. What’s New - The 2020 Form 1099-NEC - Other Implications 00:21:50
  8. What’s New - The 2020 Form 1099-MISC - 00:23:50
  9. What’s New - The 2020 Form 1099-MISC - Boxes 1,2,3, and 6 00:30:02
  10. What’s New - The 2020 Form 1099-MISC - Non-Reportable Payments 00:47:55
  11. What’s New - The 2020 Form 1099-MISC - Related Implications 00:49:15
  12. What’s New - The 2020 Form 1099-MISC - Related Implications (cont’d) 00:55:04
  13. What’s New - The 2020 Form 1099-NEC and 1099-MISC - 00:57:36
  14. Differentiating Between 1099-NEC and 1099-MISC Reporting Starts With the W-9 - 01:03:25
  15. Differentiating Between 1099-NEC and 1099-MISC Reporting Starts With the W-9 - Accounts 01:08:14
  16. Differentiating Between 1099-NEC and 1099-MISC Reporting Starts With the W-9 - Accounts (cont’d) 01:08:41
  17. Differentiating Between 1099-NEC and 1099-MISC Reporting Starts With the W-9 - Payee Refuses to Provide TIN 01:09:22
  18. Your Baseline - 01:11:09
  19. Validating Data - Problem Payees - 01:11:53
  20. Validating Data - Problem Payees -The LLC  01:12:36
  21. Validating Data - Problem Payees -The LLC as the Disregarded Entity 01:17:37
  22. Watch Out For The Middleman - 01:18:51
  23. Protect Yourself - 01:24:42
  24. Question and Answer - 01:25:14
  25. Presentation Closing 01:42:38

  • Backup Withholding 00:49:26, 01:09:26
  • B-Notice 00:04:52, 00:54:45
  • Disregarded Entity 01:06:16
  • EIN 01:08:26
  • Expense Reimbursement 00:18:54
  • Form 1099-MISC 00:01:54, 00:21:56
  • Form 1099-NEC - 00:01:51, 00:07:56
  • Form 8832 01:13:04
  • Form W-901:03:28
  • Internal Revenue Code (IRC)
  • IRC Section 3406(a) 00:01:10
  • IRC Section 6041(a) 00:01:10
  • IRC Section 6109(a)(2)00:01:10
  • Limited liability company (LLC) 00:12:15, 01:06:05, 01:12:43
  • Safe Harbor 00:04:39
  • TIN 00:54:56, 01:06:21, 01:08:17

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)

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.

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.

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)

Form 1099 MISC: The Form 1099-MISC is an Internal Revenue Service (IRS) tax return document used to report miscellaneous payment​s 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 8832: Form 8832 is the Entity Classification Election form from the IRS. It is filed to elect a tax status other than the default status for your entity. For example, an LLC can elect to be taxed as a C Corporation.

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/)

Internal Revenue Code (IRC): The Internal Revenue Code, formally the Internal Revenue Code of 1986, is the domestic portion of federal statutory tax law in the United States, published in various volumes of the United States Statutes at Large, and separately as Title 26 of the United States Code.

IRC Section 3406(a): Requires that, under certain circumstances, including failure ot payee 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 6109(a)(2): Requires that a payee provide a TIN to the payer when the payment will be reportable on an information return.

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.

Safe Harbor: A safe harbor is a provision of a statute or a regulation that specifies that certain conduct will be deemed not to violate a given rule. It is usually found in connection with a vaguer, overall standard. Under the safe harbor, a “rental real estate enterprise” is treated as a trade or business for purposes of Sec. 199A if at least 250 hours of services are performed each tax year with respect to the enterprise. ... The safe harbor requires that separate books and records be maintained for the rental real estate enterprise.

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.


Guest Speaker

Steven Mercatante

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 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,... View Full Profile


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