Live Webinar

New Form 1099-NEC

Webinar Details $219

  • Webinar Date: November 4, 2021
  • Webinar Time: 12:00pm - 1:40pm EDT   live
  • Webinar Length: 100 Minutes
  • Guest Speaker:   Steven Mercatante
  • Topic:   Taxation and Accounting
  • Credit:   CPE 2.0, IRS 2.0
All Access Membership

This webcast provides accounts payable with plain English explanations breaking down the toughest 1099 due diligence situations for 2021 - featuring a comprehensive box-by-box review of both the new  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 2021

• 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 2021

• 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 2021
  • Learn how to differentiate between payments that are now 1099-NEC reportable versus those that are 1099-MISC reportable

Level: Intermediate
Format: Live webcast
Instructional Method: Group: Internet-based
NASBA Field of Study: Taxes
Program Prerequisites: None
Advance Preparation: None

  1. Introduction
  2. IRS Focus: The Tax Gap 00:01:17
  3. The Law 00:05:44
  4. What’s New 00:12:35
  5. What’s New – The 2021 Form 1099-NEC 00:33:56
  6. What’s New - The 2021 Form 1099-NEC - Reportable Payments and Box 1 00:39:29
  7. What’s New - The 2021 Form 1099-NEC - Other Implications 00:45:02
  8. What’s New – The 2021 Form 1099-MISC 00:47:45
  9. Watch out – Be Careful Differentiating 1099-NEC From Certain 1099-MISC Payments - Boxes 1,2,3, and 6 00:48:34
  10. The 2021 Form 1099-MISC is Far Less Comprehensive Than in Past Years - Non-Reportable Payments 00:56:52
  11. The 2021 Form 1099-NEC vs. 1099-MISC - Your Action Steps 00:59:53
  12. 1099-NEC Reporting Starts With The W-9  01:07:34
  13. 1099-NEC Reporting Starts With The W-9: Name and TIN “Cheat Sheet” 01:11:00
  14. 1099-NEC Reporting Starts With The W-9: Name and TIN “Cheat Sheet” Cont’d 01:11:15
  15. 1099-NEC Reporting Starts With The W-9 - When to Get an Updated Form W-9 01:13:20
  16. 1099-NEC Reporting Starts With The W-9 - Payee Refuses to Provide a TIN 01:14:54
  17. 1099-NEC Data Validation Basics - Identifying Your Payee 01:16:08
  18. 1099-NEC Data Validation Basics - U.S. Persons 01:16:45
  19. Always Validate Claims of Non-Reportability - Corporations 01:17:54
  20. Always Validate Claims of Non-Reportability – LLC’s 01:18:18
  21. Always Validate LLC’s - The LLC as the Disregarded Entity 01:20:07
  22. 1099-NEC Data Validation: The Exempt Organization 01:20:17
  23. 1099-NEC Data Validation: TIN Match Program 01:21:15
  24. 1099-NEC Data Validation: TIN Match Program - Vendors 01:22:23
  25. 1099-NEC Data Validation: TIN Match Program 01:24:01
  26. 1099-NEC Data Validation: TIN Match Program Cont’d 01:24:18
  27. Watch Out For The 1099-NEC and the Middleman 01:26:49
  28. B-Notice Response Best Practices 01:28:14
  29. B-Notice Response Best Practices Cont’d 01:29:21
  30. B-Notice Response Best Practices - 1st Notice 01:29:21
  31. B-Notice Response Best Practices - 2nd Notice 01:29:44
  32. Protect Yourself  01:32:03
  33. Attendee Questions 01:33:31
  34. Presentation Closing 01:43:19

    • Backup Withholding 00:06:19, 01:00:26, 01:08:22
    • B-Notice 00:06:21, 01:05:25, 01:28:16
    • CP-2100 00:09:52, 01:29:34
    • CP2100-A 00:09:53
    • DBA -Doing Business As 01:08:56
    • Disregarded Entity 01:09:09
    • EIN 01:11:20, 01:20:13
    • Form 1042 01:16:19
    • Form 1042-S 01:16:19
    • Form 1099-B 01:21:15
    • Form 1099-DIV 00:32:02, 21:15
    • Form 1099-INT 01:21:15
    • Form 1099-K 00:59:50
    • Form 1099-MISC 00:10:38, 00:18:14, 00:34:13, 00:47:45, 21:15
    • Form 1099-NEC 00:05:55, 00:10:19, 00:18:14, 00:33:58, 00:47:59, 21:15
    • Form 1099-OID 01:21:15
    • Form 1099-PATR 01:21:15
    • Form 1099-R 00:24:16
    • Form 4419 00:14:46
    • Form 945 00:08:52
    • Form 990 01:20:17
    • Form W-9 01:07:39
    • Fringe Benefits 00:42:19
    • IRC 6050W 00:59:45
    • IRC Section 3406(a)  00:06:05, 01:16:07. 01:28:27
    • IRC Section 6041(a)  00:05:59, 01:16:04
    • IRC Section 6109(a)(2)  00:05:59, 01:08:07, 01:16:03
    • IRS Notice 972CG01:24:29
    • Limited liability company (LLC) 01:09:15, 01:18:18
    • S Corporation 01:10:16
    • Sole Proprietor 01:09:16
    • Tax Exempt Organization Search Tool 01:20:43
    • Tax Gap 00:02:50
    • TIN 00:09:08, 01:05:27, 01:11:02
    • TIN Match Program 01:21:17
    • Transmitter Control Code (TCC) 00:13:32

    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 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.

    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)

    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.

    Form 1042: Form 1042, also "Annual Withholding Tax Return for U.S. Source Income of Foreign Persons", is used to report tax withheld on certain income of foreign persons.

    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 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-B: Proceeds From Broker and Barter Exchange Transactions is an Internal Revenue Service (IRS) tax form that is issued by brokers or barter exchanges. The form lists the gains or losses of all broker or barter exchange transactions.

    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-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 FromCooperatives, for each person to whom the cooperative has paidat least $10 in patronage dividends and other distributionsdescribed in section 6044(b), or from whom you withheld anyfederal income tax under the backup withholding rulesregardless 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 4419: Form 4419 is mandated to be electronically filed when requesting an original TCC (first-time application).

    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-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/)

    Fringe Benefits: An extra benefit supplementing an employee's salary, for example, a company car, subsidized meals, health insurance, etc.

    IRC 6050W : Section 6050W requires information returns to be made for each calendar year by merchant acquiring entities and third party settlement organizations with respect to payments made in settlement of payment card transactions and third party payment network transactions occurring in that calendar year.

    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 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.

    S Corporation: An S corporation, for United States federal income tax, is a closely held corporation that makes a valid election to be taxed under Subchapter S of Chapter 1 of the Internal Revenue Code. In general, S corporations do not pay any income taxes.

    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.

    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


    Guest Speaker

    • Steven Mercatante