On Demand Webinar

New Form 1099-NEC

Webinar Details $219

  • Rated:
  • Webinar Length: 100 Minutes
  • Guest Speaker:   Steven Mercatante
  • Topic:   Taxation and Accounting
  • Credit:   CPE 2.0, ATATX 1.5, IRS 2.0
All Access Membership

This webcast provides accounts payable with plain English explanations breaking down the toughest 1099 due diligence situations - 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 

• 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 

• 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 
  • 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. What’s New - More Changes To 1099’s And 1099 Filing 00:01:15
  2. What’s New - Final Rules Announced 00:13:41
  3. What’s New - FIRE (Filing Information Returns Electronically) 00:24:44
  4. What’s New: 1099-NEC and 1099-MISC  - The NEC 00:35:17
  5. What’s New: 1099-NEC and 1099-MISC - The MISC  00:37:26
  6. The Form 1099 NEC Box One - Reportable Payments 00:41:46
  7. The Form 1099 NEC Box One - Examples of Payments 00:45:08
  8. 1099 NEC Box One: Expense Reimbursements, Accountable Plans, T&E, Fringe Benefits 00:49:15
  9. 1099 MISC -  Box One Issues 00:54:34
  10. 1099 MISC -  Box Two Issues 00:58:52
  11. 1099 MISC  - Box Three Issues 00:59:57
  12. 1099 MISC  - Box Four  Issues 01:02:38
  13. 1099 MISC  - Box Six Issues 01:03:25
  14. 1099-MISC Boxes 12 and 15 vs. NEC Box One 01:04:35
  15. The “Other 1099’s”: The 1099-K 01:07:08
  16. The “Other 1099’s”: The 1099-R 01:12:10
  17. The “Other 1099’s”: The 1099-INT 01:13:04
  18. The “Other 1099’s”: The 1099 B vs. 1099 DIV 01:13:47
  19. The W-9 To The 1099: Be Careful 01:16:23
  20. The W-9 To The 1099: Be Careful - Obtain Form W 9 01:17:57
  21. 1099 Data Validation Basics - Identifying Your Payee 01:19:20
  22. 1099 Data Validation Basics - U.S. Persons 01:20:13
  23. Validate Non-Reportability Before Non-Reporting - Corporations 01:20:22
  24. Validate LLC Claims of Non-Reportability- The LLC  01:20:35
  25. Validate The Exempt Organization –Tax Exempt Organization Search Tool 01:21:00
  26. The Middleman And The 1099 01:21:28
  27. Protect Yourself 01:26:37
  28. Attendee Questions 01:29:08
  29. Presentation Closing 01:46:50
  • Accountable Plan 00:49:51
  • Audit 00:03:41, 00:54:21
  • Backup Withholding 00:42:53, 01:02:38, 01:23:07
  • B-Notice 00:03:35, 01:02:49
  • De minimus 00:49:15
  • Department of Labor (DOL) 00:06:53, 00:09:28
  • Expense Reimbursement 00:47:22, 00:50:51, 01:04:46
  • Fair Market Value (FMV) 00:47:17, 00:53:07, 01:00:13
  • FATCA 00:37:45
  • FIRE - File Information Returns Electronically 00:16:45, 00:26:42
  • Form 1099-B 01:16:03
  • Form 1099-DIV 01:13:47
  • Form 1099-INT 01:13:04
  • Form 1099-K 01:07:12
  • Form 1099-MISC 00:12:15, 00:19:51, 00:24:08, 00:29:47, 00:54:39, 01:03:17
  • Form 1099-NEC 00:01:22, 00:06:57, 00:19:52, 00:24:14, 00:35:17, 00:42:02, 00:56:17
  • Form 1099-R 00:19:55, 01:12:23
  • Form 1099-S 00:56:46
  • Form 945 00:01:33, 01:03:23
  • Form W-2 00:49:15
  • Form W-9 00:42:46, 01:16:27, 01:20:27
  • Fringe Benefits 00:47:21, 00:49:19, 01:04:42
  • Golden Parachute Payments 00:37:26
  • Inflation Reduction Act Of 2022 00:02:34
  • IRC Section 3406(a) 00:01:15, 00:45:09
  • IRC Section 409A 01:05:11
  • IRC Section 6041(a) 00:12:07
  • IRC Section 6045 01:02:31
  • IRC Section 6109(a)(2) 00:01:15
  • Limited Liability Company (LLC) 00:09:08, 00:10:22, 00:34:04, 01:16:43, 01:20:35
  • Nonqualified Deferred Compensation (NQDC) 01:05:06
  • Personal Property 00:55:42
  • Real Property 00:55:38
  • Safe harbor 00:15:24
  • Sole Proprietor 00:10:21. 00:34:04, 01:16:42
  • Tax Cuts and Jobs Act 00:50:56
  • Tax Gap 00:01:15
  • TIN 00:42:51, 01:02:48, 01:16:34
  • Transmitter Control Code (TCC) 00:15:32, 00:17:05, 00:22:00, 00:35:11
  • Vendor 00:10:15, 00:22:11, 00:33:20, 00:42:43, 01:02:46
  • DBA -Doing Business As 01:16:40
  • Disregarded Entity 01:16:46
  • EIN 01:18:14
  • Form W-80 1:19:27
  • Form 1042-S 01:19:30
  • Substantial Presence Test (SPT) 01:19:40
  • Tax Exempt Organization Search Tool 01:21:14

Accountable Plan: An accountable plan is a plan that follows the Internal Revenue Service (IRS) regulations for reimbursing workers for business expenses in which reimbursement is not counted as income. ... However, these expenses must be business-related to fall under an accountable plan.

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."

De Minimis: Too trivial or minor to merit consideration.

Department of Labor (DOL): The United States Department of Labor is a cabinet-level department of the U.S. federal government responsible for occupational safety, wage and hour standards, unemployment insurance benefits, reemployment services, and some economic statistics; many U.S. states also have such departments.

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)

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 Market Value (FMV): The term fair market value is used throughout the Internal Revenue Code among other federal statutory laws in the USA including Bankruptcy, many state laws, and several regulatory bodies. In litigation in many jurisdictions in the United States, the fair market value is determined at a hearing.

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-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-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-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 1099-S: A Form 1099-S is a tax document used to ensure that the full amount received for a real estate sale of some kind is accurately reported. A 1099-S can also be used to report income made on a rental property or investment property. For selling real estate, the buyer must complete and file their own 1099-S.

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-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/)

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

Golden Parachute Payments: Golden parachute payments are payments of compensation made to individuals whose companies experience a change in control

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 409A: Section 409A of the United States Internal Revenue Code regulates nonqualified deferred compensation paid by a "service recipient" to a "service provider" by generally imposing a 20% excise tax when a certain design or operational rules are contained in the section are violated.

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.

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.

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.

Nonqualified Deferred Compensation (NQDC): A nonqualified deferred compensation (NQDC) plan is an elective or non-elective plan, agreement, method, or arrangement between an employer and an employee (or service recipient and service provider) to pay the employee or independent contractor compensation in the future. (www.irs.gov)

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.

Personal Property: Personal property is something that you could pick up or move around. This includes such things as automobiles, trucks, money, stocks, bonds, furniture, clothing, bank accounts, money market funds, certificates of deposit, jewels, art, antiques, pensions, insurance, books, etc.

Real Property: Real property is land and any property attached directly to it, including any subset of land that has been improved through legal human actions. Examples of real properties can include buildings, ponds, canals, roads, and machinery, among other things

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.

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.

Tax Cuts and Jobs Act: The Act to provide for reconciliation pursuant to titles II and V of the concurrent resolution on the budget for fiscal year 2018, Pub.L. 115–97, is a congressional revenue act of the United States originally introduced in Congress as the Tax Cuts and Jobs Act, that amended the Internal Revenue Code of 1986.

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

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.


Guest Speaker

  • Steven Mercatante

CPE Credit

Continuing Professional Education

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You must answer all questions during the webinar, view the recording completely and pass the test at the end with 70% correct answers to receive CPE credit.

ATATX Credit

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IRS Credit

Preparer Tax Identification Number