1099 Reporting Round-Up: Last Minute Reminders

1. Introduction
2. The Law -Learn it, Know it, Live it 00:01:24
3. W-9 Overview and What’s New: 1099 E-Filing Changes - Prospective Changes 00:19:35
4. W-9 Overview and What’s New: 1099 E-Filing Changes - Current rules for E-Filing 1099’s 00:25:19
5. 1099 Corrections Tips 00:28:37
6. What’s New: Draft Form 1099-DA 00:36:44
7. What’s New: Draft Form 1099-NEC 00:41:08
8. The Form 1099-NEC Box One- Reportable Payments 00:44:23
9. 1099-NEC Box Four 00:48:01
10. The Form 1099-NEC Box One - Examples of Reportable Payments 00:54:03
11. Expense Reimbursements, Accountable Plans, Fringe Benefits 00:57:03
12. 1099-MISC 01:00:42
13. 1099-MISC Box One - Rent and Reporting Exceptions 01:01:44
14. 1099-MISC Box One - Special Form 1099-S Issue 01:03:33
15. 1099-MISC Box Two - Royalties 00:03:53
16. 1099-MISC Box Three - Prizes and Awards 01:04:33
17. 1099-MISC Box Three - Settlement Payments 01:06:03
18. 099-MISC Box Four - Backup Withholding 01:07:39
19. 1099-MISC Box Six - Medical Payments 01:07:49
20. 11099-MISC vs. 1099-NEC Director’s Payments 01:08:33
21. The “Other 1099’s”: The-1099-K 01:12:16
22. The “Other 1099’s”: The 1099-R 01:17:01
23. The “Other 1099’s”: The 1099-INT 01:19:31
24. The “Other 1099’s”: The 1099-B 01:21:38
25. The “Other 1099’s”: The 1099-DIV 01:22:48
26. The “Other 1099’s”: The 1099-C 01:25:16
27. Don’t Forget Why The W-9 is So Important for Filing 01:26:13
28. Form W-9 Solicitations 01:28:53
29. Your 1099 Year-End Baseline 01:28:58
30. Validating Data - How to Know Who’s Who 01:29:10
31. Validating Data -  U.S. Persons 01:30:52
32. Validating Data - W-9 Red Flags for Non-U.S. Payees 01:31:50
33. Validating Data – Problem Payees - U.S. Corporations 01:33:16
34. Validate LLC Claims of Non-Reportability - The LLC  01:33:35
35. Validating Data – Problem Payees - The LLC as the Disregarded Entity 01:34:18
36. Validating Data – The Exempt Organization - Tax Exempt Organization Search Tool 01:34:42
37. Watch Out For The Middleman 01:35:20
38. Protect Yourself 01:37:09
39. Attendee Questions 01:38:51
40. Presentation Closing 01:41:31

• 

  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 web [...]

  View Full Profile

• Accountable Plan 00:57:10
• Artificial Intelligence (AI) 00:15:25
• Audit 00:03:28, 01:27:20
• Backup Withholding 00:05:22, 00:48:06, 01:34:38
• B-Notice 00:03:23, 01:28:33
• Compensatory Damages 01:06:48
• CP-2100 00:23:07
• DBA -Doing Business As 01:26:51
• Deferred Compensation 01:08:53
• De Minimis 00:59:38
• Disregarded Entity 00:32:00, 01:26:42
• Due Diligence 01:17:01, 01:33:16
• EIN 01:32:03
• Exempt 01:35:10
• Expense Reimbursement 00:57:06, 00:58:11, 01:06:30
• Fair Market Value (FMV) 01:
• Fair Market Value (FMV) 01:07:39
• FATCA 01:08:33 
• FIRE - File Information Returns Electronically 00:06:23, 00:24:12
• Form 1042-S 01:27:11
• Form 1099-B 01:21:40
• Form 1099-C 01:25:17
• Form 1099-DA 00:36:48
• Form 1099-DIV 01:22:51
• Form 1099-INT 01:19:35
• Form 1099-K 01:12:24, 01:15:50
• Form 1099-MISC 00:21:56, 00:42:57, 00:48:09, 01:01:06, 01:06:07, 01:23:17
• Form 1099-NEC 00:07:00, 00:21:23, 00:41:23, 00:48:08, 00:55:40, 01:01:03, 01:04:59
• Form 1099-R 01:17:01
• Form 1099-S 01:03:47
• Form 8832 01:33:35
• Form 945 00:53:42
• Form 990 01:34:42
• Form W-2  01:07:02
• Form W-2 01:35:05
• Form W-8 01:27:27
• Form W-8 01:32:45
• Form W-9 00:02:39, 00:06:36, 00:41:58, 00:48:53, 01:27:40, 01:30:57
• Fringe Benefits 00:55:15, 00:59:11
• Garnishment 00:02:23
• Golden Parachute Payments  00:42:50
• Gross Proceeds Payment 00:02:14
• Independent Contractor 00:57:09
• Information Returns Intake System (IRIS) 00:06:25, 00:24:01, 00:25:49
• Intangible Personal Property 01:04:14
• IRC 6050W 01:12:50
• IRC Section 132 00:55:21
• IRC Section 3406(a)  00:01:24
• IRC Section 409A 01:09:00
• IRC Section 6041(a)   00:01:24
• IRC Section 6045 00:02:08
• IRC Section 6109(a)(2) 00:02:30, 00:49:08
• IRC Section 6724 00:08:59
• IRS Notice 972CG 00:23:08
• ITIN 01:32:01
• Levy 01:35:59
• Limited Liability Company (LLC) 00:03:52, 00:34:33, 01:02:54, 01:26:32
• Nexus 01:11:23
• Nonqualified Deferred Compensation (NQDC) 01:09:15
• Nonresident Alien (NRA) 01:29:15
• Operating Lease 01:02:24
• Personal Property 01:01:49
• Punitive Damages 01:06:50
• Real Property 01:01:46
• Reasonable Cause 01:29:24
• Resident Alien 01:31:01
• Tax Exempt Organization Search Tool 01:34:51
• Tax Gap 00:10:50
• TIN 00:02:32, 00:08:20, 00:31:56, 00:48:45, 01:34:29
• TIN Match Program  00:08:28
• Transmitter Control Code (TCC) 00:06:22, 00:24:47, 00:28:10
• Vendor 00:03:03, 00:04:08, 00:11:20, 00:25:11, 00:28:49, 00:46:26, 01:28:42

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.

Artificial Intelligence (AI): Artificial intelligence is intelligence demonstrated by machines, as opposed to the natural intelligence displayed by humans or animals.

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.

Compensatory Damages: A sum of money awarded in a civil action by a court to indemnify a person for the particular loss, detriment, or injury suffered as a result of the unlawful conduct of another. Compensatory damages provide a plaintiff with the monetary amount necessary to replace what was lost, and nothing more.

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.

Deferred Compensation: Deferred compensation is an arrangement in which a portion of an employee's income is paid out at a later date after which the income was earned. Examples of deferred compensation include pensions, retirement plans, and employee stock options. (en.wikipedia.org)

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

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-C: According to the IRS, nearly any debt you owe that is canceled, forgiven or discharged becomes taxable income to you. You'll receive a Form 1099-C, "Cancellation of Debt," from the lender that forgave the debt.

Form 1099-DA: This form is specifically designed to handle the reporting for cryptocurrency and digital assets.

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 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.

Garnishment: A legal summons or warning concerning the attachment of property to satisfy a debt

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

Gross Proceeds Payment: When a business sells an asset, whether tangible or intangible, it receives a payment, which is the gross proceeds. The amount includes the costs of production and other costs and expenses related to the transaction.

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 132: Internal Revenue Code Section 132(a) provides eight types of fringe benefits that are excluded from gross income

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/)

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.

Levy: A tax levy, under United States Federal law, is an administrative action by the Internal Revenue Service under statutory authority, generally without going to court, to seize property to satisfy a tax liability. The levy "includes the power of distraint and seizure by any means".

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.

Nexus: The term nexus is used in tax law to describe a situation in which a business has a "nexus" or tax presence in a particular state or states. A nexus is basically a connection between a taxing jurisdiction, like a state, and an entity like a business that must collect or pay the tax.

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.

Operating Lease: An operating lease is generally treated like renting. That means the lease payments are treated as operating expenses and the asset does not show on the balance sheet.

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.

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.

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

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.

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

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.