Live Webinar

Form 1099 Update

Webinar Details $219

  • Webinar Date: October 26, 2021
  • Webinar Time: 2:00pm - 3:40pm EDT   live
  • Webinar Length: 100 Minutes
  • Guest Speaker:   Steven Mercatante
  • Topic:   Taxation and Accounting
  • Credit:   CPE 2.0
All Access Membership

With constant revisions to Form 1099 and the related rule changes, it is crucial to remain up-to- date with the current information reporting laws to avoid those dreaded penalties and interest not to mention the time consumed to make corrections.

Changes to 1099's covered by this program include the big new changes brought by the new Forms 1099-NEC and 1099-MISC

This program will address the top problems you need to watch out for when filing Forms 1099-MISC, 1099-NEC, 1099-S, 1099-B, 1099-DIV, 1099-INT, 1099-R, and 1099-K

Everything you need to know to prepare the Latest 1099 Forms:

  • Changes to Forms 1099 and what information you need to be in compliance
  • What to do if payments include both goods and services
  • Rentals of personal property vs rentals of real property
  • Payments to Attorneys & Health Care Professionals
  • Judgment Payments and Forms 1099

Strategies to Remain Compliant with Proper Policies & Procedures:

  • What is reportable and which Form 1099 to use
  • Information reporting to non-profits
  • Information reporting to Corporations, LLCs & other tricky classifications

Objectives:

  • Updates on various 1099 forms and their respective reporting requirements
  • Determine which form to use and what amounts are reportable
  • Overview of latest penalty increases for noncompliance and possible abatement of penalties
  • Tips for developing information reporting office procedures which reflect due diligence onthe part of the payer

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

  1. Introduction
  2. What’s New  - 00:01:12
  3. What’s New  Cont’d - 00:12:35
  4. What’s New - The 2021 Form 1099 NEC - 00:20:32
  5. What’s New - The 2021 Form 1099-NEC - Reportable Payments in Box 1 00:24:12
  6. What’s New - The 2021 Form 1099-NEC - Further Notes On Form 1099-MISC and Form 1099-NEC 00:27:13
  7. What’s New - The 2021 Form 1099-MISC - 00:28:17
  8. What’s New - The 2021 Form 1099-MISC - Boxes 1,2,3, and 6 00:37:30
  9. What’s New - The 2021 Form 1099-MISC - Non-Reportable Payments 00:37:49
  10. What’s New - The 2020 Form 1099-NEC and 1099-MISC - Your Summer Action Steps  00:38:16
  11. 1099 Due Diligence Starts with the W-9 00:45:38
  12. 1099 Due Diligence Starts with the W-9  - Name and TIN “Cheat Sheet” - 00:49:26
  13. 1099 Due Diligence Starts with the W-9  - Name and TIN “Cheat Sheet” Cont’d 00:49:43
  14. 1099 Due Diligence Starts with the W-9  - When To Get An Updated Form W-9 00:50:35
  15. 1099 Due Diligence Starts with the W-9 - Payee Refuses to Provide TIN 00:54:24
  16. Validating Data - Exempt Payments 00:56:09
  17. Validating Data - Identifying Your Payee: How To Know Who’s Who 00:57:12
  18. Validating Data - U.S. Persons 00:58:26
  19. Validating Data - W-9 Red Flags 00:59:32
  20. Validating Data - Problem Payees 01:01:13
  21. Validating Data - Problem Payees - The LLC  01:01:29
  22. Validating Data - Problem Payees -The LLC as the Disregarded Entity 01:02:59
  23. Validating Data - Travel And Expense Rules Under The Accountable Plans 01:03:41
  24. Validating Data - Problem Payees: The Exempt Organization Search Tool 01:05:40
  25. Validating Payee Data - TIN Match Program 01:07:01
  26. Validating Payee Data - TIN Match Program 01:09:14
  27. Watch Out For The Middleman 01:11:10
  28. Backup Withholding Tips 01:13:25
  29. Backup Withholding Tips - Four Triggers 01:14:01
  30. Backup Withholding Policies and Your Year-End Tasks - Gross Amounts 01:
  31. Backup Withholding Tips - B-Notices 01:14:48
  32. Backup Withholding Tips 01:16:26
  33. Backup Withholding Tips 01:17:11
  34. Backup Withholding Tips - Form 945 01:17:58
  35. Backup Withholding Tips - Form 945 Cont’d 01:18:18
  36. 1099 Due Diligence Issues: Fringe Benefits and Expense Reimbursements 01:18:30
  37. The “Other 1099’s”: The 1099-K  01:23:53
  38. The “Other 1099’s”: The 1099-R 01:30:45
  39. The “Other 1099’s”: The 1099-INT, 1099-B, 1099-DIV, 1099-C 01:33:54
  40. B-Notices Best Practices Response 01:36:29
  41. B-Notice Response Best Practices - 1st Response 01:37:24
  42. B-Notice Response Best Practices - 2nd Response 01:37:31
  43. Protect Yourself - 01:39:05
  44. Question and Answer - 01:40:28
  45. Presentation Closing 01:44:35
  • Accountable Plan 01:03:49
  • Audit 00:03:28
  • Backup Withholding 00:07:59, 00:42:44
  • B-Notice 00:01:52, 00:08:06, 00:38:25, 01:07:45
  • C-Notice 01:14:15
  • CP-2100 01:36:29
  • CP2100-A 01:36:29
  • Disregarded Entity 00:47:08, 01:02:59
  • D Notice 01:14:26
  • EIN 00:49:45, 01:00:20
  • Expense Reimbursement 00:05:44, 00:25:45, 01:03:48, 01:18:36
  • FATCA 00:46:08, 00:48:42
  • Form 1042-S 00:31:22
  • Form 1042-S 00:57:37
  • Form 1099-B 01:07:01
  • Form 1099-B 01:34:37
  • Form 1099-DIV 01:07:01, 01:34:37
  • Form 1099-INT 00:26:28, 01:33:57
  • Form 1099-K 00:38:12
  • Form 1099-K 01:07:01, 01:23:54
  • Form 1099-MISC 00:20:52, 00:23:53, 00:28:37
  • Form 1099-NEC 00:13:37, 20:49
  • Form 1099-OID 01:07:01
  • Form 1099-PATR 01: 07:01
  • Form 1099-R 00:26:39, 00:37:57, 01:30:47
  • Form 1099-S 00:32:57
  • Form 8832 01:01:29
  • Form 945 00:41:38, 00:57:48, 01:13:51, 01:16:25 
  • Form 945-A 01:18:04
  • Form 990 01:06:20
  • Form W-2 00:05:39, 00:37:59
  • Form W-9 00:07:11, 00:10:02, 00:45:40, 00:50:41
  • Fringe Benefits 00:05:41, 00:25:48, 01:05:33, 01:18:35
  • Golden Parachute Payments 00:28:17
  • Gross Proceeds Payment 00:28:17
  • IRC Section 3406(a) 00:08:09, 01:
  • IRC Section 6041(a) 00:01:12
  • IRC Section 6109(a)(2) 00:01:12, 00:42:38
  • ITIN 01:00:00
  • Limited Liability Company (LLC) 00:47:16, 01:01:35
  • Resident Alien 00:58:40
  • Sole Proprietor 00:47:22
  • Tax Cuts and Jobs Act 00:05:35
  • Tax Exempt Organization Search Tool 01:06:01
  • Tax Gap 00:03:01
  • TIN 00:10:05, 0:17:30, 00:42:15, 00:46:01
  • TIN Match Program 01:09:18
  • Vendor 00:24:43, 00:46:31

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)

C-Notice: Backup withholding notice from the IRS stating that the non-employee has understated income and is subject to backup withholding.

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.

D Notice: If you received an LT16 A/D notice, it's because he IRS is trying to collect unpaid taxes from you and/or their files show they're missing tax returns from you. It is essential that you take action in order to avoid potential enforcement action, which can include seizing your assets or wages. Enforcement action could also include the filing of a notice of federal tax lien, which could affect your credit score and ability to borrow.

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)

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.

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 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 945-A: Use this form to report your federal tax liability (based on the dates payments were made or wages were paid) for the following tax returns.*Forms 945 and 945-X for federal income tax withholding on nonpayroll payments.*Forms CT-1 and CT-1 X for both employee and employer Tier I taxes and employer Tier II taxes.*Forms 944 and 944-X for federal income tax withheld plus both employee and employer social security and Medicare taxes.

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-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.

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 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.

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.

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.

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.

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