1099 Reporting Round-Up: Last Minute Reminders

1. Introduction
2. What’s New - The Tax Gap 00:01:23
3. What’s New - 1099 Filing Changes - Final rules for E-filing 1099’s 00:09:11
4. What’s New - Changes To FIRE 00:16:16
5. What’s New - What’s New: 1099 NEC and 1099 MISC - Form 1099-NEC 00:27:06
6. What’s New - What’s New: 1099 NEC and 1099 MISC - Form 1099-MISC 00:29:45
7. The Form 1099-NEC Box One- Reportable Payments 00:36:41
8. The Form 1099-NEC Box One - Examples of Reportable Payments 00:38:37
9. 1099-NEC Box One: Expense Reimbursements, Accountable Plans, T&E, Fringe Benefits 00:48:15
10. 1099-MISC Box One Issues 00:55:32
11. 1099-MISC Box Two Issues 00:59:41
12. 1099-MISC Box Three Issues 01:00:32
13. 099-MISC Box Four Issues 01:05:18
14. 1099-MISC Box Six Issues 01:08:14
15. 1099-MISC Boxes 12 and 145vs. 1099-NEC Box One 01:10:06
16. The “Other 1099’s”: The-1099-K 01:12:56
17. The “Other 1099’s”: The 1099-R 01:17:45
18. The “Other 1099’s”: The 1099-INT 01:19:32
19. The “Other 1099’s”: The 1099-B vs. 1099-DIV 01:20:29
20. The W-9 To The 1099: Be Carefull 01:22:18
21. The W-9 To The 1099: Be Careful - Obtain Form W 9 01:25:01
22. 1099 Data Validation Basics - Identifying Your Payee: Who is 1099 Reportable? 01:25:00
23. 1099 Data Validation Basics -  U.S. Persons 01:26:27
24. Validate Claims of Non-Reportability Before Non-Reporting -  Corporations 01:27:06
25. Validate LLC Claims of Non-Reportability - The LLC  01:27:41
26. Validate The Exempt Organization - Tax Exempt Organization Search Tool 01:28:47
27. The Middleman And the 1099 01:30:08
28. Protect Yourself 01:35:42
29. Attendee Questions 01:37:00
30. Presentation Closing 01:43:06

• Accountable Plan 00:49:20
• Audit  01:07:07, 01:27:05, 01:36:11
• Backup Withholding 01:05:10, 01:22:14
• B-Notice 00:02:43
• DBA -Doing Business As 01:22:48, 01:29:44
• De Minimis 00:52:36
• Department of Labor (DOL) 00:06:38
• Disregarded Entity 01:22:48, 01:28:38
• EIN 01:24:41
• Exempt 01:03:13
• Expense Reimbursement 00:48:21, 01:03:03
• Fair Market Value (FMV) 01:00:32
• FATCA 00:31:10, 00:33:25
• FIRE - File Information Returns Electronically 00:16:46, 01:12:12
• Form 1042-S 00:58:31
• Form 1042-S 01:26:43
• Form 1099-B 01:21:07
• Form 1099-DIV 00:17:43
• Form 1099-DIV 01:20:31
• Form 1099-INT 00:17:43
• Form 1099-INT 01:19:32
• Form 1099-K 01:13:03
• Form 1099-MISC  00:17:33, 00:22:23, 00:29:49, 01:00:37, 01:05:24
• Form 1099-NEC 00:17:33, 00:27:10, 00:34:14, 00:36:44, 00:45:01
• Form 1099-R 01:17:47
• Form 8832 01:27:56
• Form 945 01:05:18
• Form 990 01:29:51
• Form W-2 01:03:06
• Form W-8 01:26:44
• Form W-9 01:22:20, 01:24:04
• Fringe Benefits 00:48:57
• Golden Parachute Payments 01:11:34
• Inflation Reduction Act Of 2022 00:02:17
• Intangible Personal Property 01:00:12
• IRC Section 3406(a)  00:01:23
• IRC Section 409A 01:10:54, 01:12:24
• IRC Section 6041(a)  00:01:23
• IRC Section 6109(a)(2) 00:01:23
• Limited Liability Company (LLC) 01:22:41, 01:27:41
• Nonqualified Deferred Compensation (NQDC) 01:10:34
• Nonresident Alien (NRA) 01:25:28, 01:26:37
• Punitive Damages 01:03:33
• Resident Alien 01:25:19
• Sole Proprietor 01:22:40
• Substantial Presence Test (SPT) 01:25:23
• Tax Cuts and Jobs Act 00:48:26, 00:52:23
• Tax Exempt Organization Search Tool 01:29:19
• Tax Gap 00:01:23
• TIN 00:05:50, 00:40:20, 01:23:03, 01:28:49
• TIN Match Program 01:30:09
• Transmitter Control Code (TCC) 00:10:36, 00:14:49, 01:12:15
• Vendors 00:12:16, 00:17:21, 00:22:09, 00:50:03, 01:23:49

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.

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.

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

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-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 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 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-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 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.

Punitive Damages: Punitive damages, or exemplary damages, are damages assessed in order to punish the defendant for outrageous conduct and/or to reform or deter the defendant and others from engaging in conduct similar to that which formed the basis of the lawsuit.

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 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.