Regulatory Issues Every AP Department Must Monitor

On Demand Webinar

Webinar Details $219

  • Rated:
  • Webinar Length: 100 Minutes
  • Guest Speaker:   Mary Schaeffer
  • Topic:   Taxation and Accounting, Accounts Payable
  • Credit:   CPE 2.0, ATATX 1.5
All Access Membership

Today’s reality is that in most organizations, there’s more work than staff to handle that work. So, something ends up getting the short stick. Often that is regulatory compliance. An industry expert notes “Most CFO's aren't concerned about compliance—unless there's an auditor at the door, it's just not a priority for them.” Unfortunately, then it's too late. The fines and penalties and aggravation are sure to follow—unless the accounts payable and/or accounting departments are doing their jobs. That's where AP Now comes in.


When it comes to regulatory concerns affecting the accounts payable function, 1099 and 1042 reporting is just the tip of the iceberg. There's a lot more that must be done. If not, the organization could run into trouble with the IRS, various state regulatory bodies, the Department of Justice, Treasury and more. Negative publicity, fines, penalties, and in a few cases jail time are some of the fallouts that could result from ignoring these issues. When it comes to these matters the governing bodies have no senses of humor and ignorance is no excuse.


In this session we'll review what every organization should be doing when it comes to OFAC, FCPA, IRS T&E Rules, Use tax and Unclaimed Property and more. The session will include a quick explanation of each issue along with why these are likely to be issues that should be addressed. It will also contain a checklist of items for each issue showing what every organization should be doing with regard to each matter. 


We’ll also take a brief look at the new electronic invoicing mandates that are currently being initiated in a number of other countries. While neither the US or the UK has adopted this type of mandate, if (or maybe we should say when) they are successful in increasing tax revenues for those adopting them, that could change. 


Learning Objectives:


  • Understand which regulatory issues they need to address;
  • Identify potential shortfalls in their operation as they relate to regulatory issues;
  • Fix regulatory operational loopholes in their operation;
  • Recognize which regulatory issues they need to investigate further; and
  • Create processes to ensure regulatory compliance for their organizations on all issues applicable to the payment function.
  1. Introduction
  2. About Mary Schaeffer 00:1:24
  3. Agenda 00:03:00
  4. Overview 00:04:32
  5. IRS Funding 00:04:39
  6. A Word About the IRS 00:05:34
  7. A Word About Multi-Issue Audits 00:07:11
  8. Tougher Regulatory Stances 00:10:31
  9. What This Means For Accounting 00:11:34
  10. Your Checklist 00:12:34
  11. What To Do With This Information 00:13:41
  12. What to Do with These Facts: Part 1 00:13:45
  13. What to Do with These Facts: Part 2 00:15:14
  14. Commonly Recognized And Complied With Requirements 00:15:45
  15. The Issues 00:15:57
  16. TIN Solicitation 00:17:45
  17. IRS Rumor 00:20:27
  18. TIN Solicitation Monitoring 00:21:37
  19. Form 1099-NEC Reporting: Just Announced 00:23:07
  20. Now Form 1099 MISC + NEC Reporting 00:24:15
  21. More 1099 Reporting 00:25:08
  22. Even More 1099 Reporting 00:26:56
  23. What Forms Can Be TIN Matched 00:27:38
  24. What about IRS TIN Matching 00:29:16
  25. Larger Portion IRS Budget 00:29:16
  26. A Word About Paper Filing 00:30:19
  27. Sales Tax 00:30:51
  28. Sales Tax Complication 00:31:32
  29. When Invoices Don’t Show Sales Tax 00:32:08
  30. When Invoices Says Included 00:33:12
  31. IRS Expense Reimbursement - IRS Guidelines 00:33:48
  32. IRS Expense Reimbursement - Business Purpose 00:36:11
  33. IRS Expense Reimbursement - Manager Accountability 00:36:58
  34. Tax Cut and Jobs Act (TC&JA) 00:39:15
  35. Experts On Both Sides Of Issue 00:39:26
  36. Dues to Social, Athletic, Or Sporting Clubs 00:40:11
  37. Meals While An Employee Is Traveling 00:40:47
  38. IRS Provides Some Guidance 00:41:06
  39. What’s Entertainment 00:42:00
  40. The Big TC&JA Controversy 00:42:36
  41. When Entertaining and Eating 00:42:41
  42. Some Guidance: Extravagant 00:44:15
  43. In the Meantime 00:44:23
  44. The Million Dollar Question 45:04
  45. Requirements Only Partially Complied With 00:45:07
  46. The Issues 00:46:18
  47. Use Tax - Nexus 00:46:49
  48. Use Tax - Buyer’s Responsibility 00:49:29
  49. Use Tax Don’ts 00:50:22
  50. Use Tax Don’ts Cont’d 00:52:32
  51. Use Tax Don’ts Cont’d 00:52:44
  52. Use Tax Oddities 00:53:47
  53. Keeping Current 00:57:28
  54. Did You Overpay 00:59:39
  55. Unclaimed Property 01:00:20
  56. Most Common Unclaimed Property In Accounting 01:01:49
  57. Unclaimed Property 01:03:33
  58. Standard Way To Avoid Unclaimed Property 01:05:10
  59. Avoiding Unclaimed Property 01:06:20
  60. Worker Classification 01:08:11
  61. What Can Go Wrong if You Misclassify 01:10:31
  62. Worker Classification Checklist 01:11:59
  63.  Gig Employees 01:13:11
  64. Independent Contractor Rules: Looking Forward 01:13:49
  65. Older Requirements Rarely Complied With 01:14:26
  66. The Issues 01:14:36
  67. OFAC 01:15:00
  68. SDN 01:16:43
  69. OFAC: What You’re Supposed To Do 01:17:42
  70. OFAC Continued 01:19:39
  71. OFAC New Best Practice 01:21:24
  72. FCPA 01:22:43
  73. FCPA Cont’d 01:23:40
  74. FCPA: What to Look For (Part1) 01:24:56
  75. FCPA: What to Look For (Part2) 01:27:27
  76. FCPA: This Would Never Happen and How Would They Find It 01:28:32
  77. New And/Or Specialty Industry Compliance 01:31:20
  78. The Issues 01:31:27
  79. W-8 and FATCA 01:32:44
  80. FATCA Continued 01:
  81. Sunshine Act - Effective Date 01:33:39
  82. Sunshine Act - Who’s Affected 01:34:28
  83. Sunshine Act - Report Payments 01:34:58
  84. What’s Done with Information 01:35:57
  85. Information Reported 01:36:36
  86. What Else Must Be Reported? 01:37:03
  87. Stark Law 01:37:39
  88. Conflict Minerals Reporting 01:37:16
  89. Conflict Minerals Reporting Cont’d 01:38:58
  90. Conflict Minerals Reporting Cont’d 01:39:36
  91. Conflict Minerals Reporting Cont’d 01:40:13
  92. Sunshine/Conflict Minerals/Or Any Other New Issue Approach 01:40:42
  93. What To Do With This Information 01:42:38
  94. What To Do With This Information - Master Checklist 01:42:45
  95. Concluding Thoughts 01:43:11
  96. Thank You/Questions/Comments 01:45:46
  97. Presentation Closing 01:46:09
  • Accounts Payable (AP) 00:03:15, 00:12:19, 00:23:25, 01:12:03, 01:23:47
  • AICPA 00:39:45
  • Audit 00:08:34, 00:18:56, 0:29:28, 01:11:53
  • B-Notice 00:26:45
  • Conflict Minerals Reporting 01:38:17, 01:42:31
  • Cryptocurrency 00:27:26
  • Department of Labor (DOL) 01:13:11
  • Due Diligence 00:01:02:38, 01:03:35
  • Expense 00:36:38
  • Expense Reimbursement 00:16:29, 00:34:22, 00:36:30, 00:39:25
  • Expense Report 00:56:25, 01:27:32
  • FATCA 01:31:54, 01:33:51
  • FCPA - Foreign Corrupt Practices Act 01:14:41, 01:22:47
  • Form 1099 00:18:25, 00:22:57, 01:12:21
  • Form 1099-B 00:27:38
  • Form 1099-DA 00:27:05
  • Form 1099-DIV 00:27:38
  • Form 1099-INT 00:27:38
  • Form 1099-MISC 00:20:31, 00:28:03
  • Form 1099-NEC 00:23:40, 00:28:03
  • Form 1099-OID 00:27:38
  • Form 1099-PATR 00:27:38
  • Form 8919 01:11:31
  • Form W-8 01:31:39, 01:32:51
  • Form W-9 00:18:01, 00:20:35, 01:31:45
  • Fringe Benefit 00:36:19
  • Independent Contractor  01:08:27, 01:11:21
  • Invoice 00:32:06, 00:50:11
  • Nexus 00:47:28, 00:49:42
  • OFAC - Office of Foreign Assets Control 01:14:41, 01:15:13
  • Per Diem 00:36:57
  • Revenue 00:07:33
  • SDN - Specially Designated Nationals 01:14:43, 01:17:08, 01:18:19
  • Stark Law 01:37:41
  • Sunshine Act 01:32:44, 01:33:40
  • Supplier 00:31:31, 00:33:21
  • Tax Cut and Jobs Act 00:39:22
  • Tax Gap 00:07:20
  • TIN 00:16:09, 00:20:01, 00:28:43
  • TIN Match Program 00:21:58, 00:27:44
  • Unclaimed Property 00:08:16, 00:13:30, 00:46:40, 01:00:24, 01:03:30
  • Vendor 00:19:52, 00:22:21, 00:31:31, 00:51:58, 01:19:48

AICPA: The American Institute of Certified Public Accountants is the national professional organization of Certified Public Accountants in the United States, with more than 418,000 members in 143 countries in business and industry, public practice, government, education, student affiliates and international associates.

Accounts Payable (AP): The amount of money a company owes creditors (suppliers, etc.) in return for goods and/or services they have delivered.

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.

Conflict Minerals Reporting: The Conflict Minerals Reporting Template (CMRT) is a free, standardized reporting template developed by the Responsible Minerals Initiative (RMI) that facilitates the transfer of information through the supply chain regarding mineral country of origin and the smelters and refiners being utilized.

Cryptocurrency: A cryptocurrency (or crypto currency) is a digital asset designed to work as a medium of exchange wherein individual coin ownership records are stored in a digital ledger or computerized database using strong cryptography to secure transaction record entries, to control the creation of additional digital coin records, and to verify the transfer of coin ownership.

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.

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.

Expense: Offset (an item of expenditure) as an expense against taxable income.

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)

Expense Report: A report that tracks expenses incurred during the course of performing necessary job functions. Examples include charges for gas, meals, parking or lodging. If your employees spend a lot of money in cash, you need to make sure you have them list these expenditures on an expense report form.

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.

FCPA - Foreign Corrupt Practices Act: The Foreign Corrupt Practices Act of 1977 is a United States federal law that prohibits U.S. citizens and entities from bribing foreign government officials to benefit their business interests.

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 1099: Form 1099 is one of several IRS tax forms used in the United States to prepare and file an information return to report various types of income other than wages, salaries, and tips (for which Form W-2 is used instead). - Wikipedia (https://en.wikipedia.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-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-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-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 From Cooperatives, for each person to whom the cooperative has paid at least $10 in patronage dividends and other distributions described in section 6044(b), or from whom you withheld any federal income tax under the backup withholding rules regardless of the amount of the payment.

Form 8919: Use Form 8919 to figure and report your share of the uncollected social security and Medicare taxes due on your compensation if you were an employee but were treated as an independent contractor by your employer. By filing this form, your social security earnings will be credited to your social security record.

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.

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/)

Invoice: An invoice, bill or tab is a commercial document issued by a seller to a buyer, relating to a sale transaction and indicating the products, quantities, and agreed prices for products or services the seller had provided the buyer. Payment terms are usually stated on the invoice.

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.

OFAC - Office of Foreign Assets Control: The Office of Foreign Assets Control is a financial intelligence and enforcement agency of the U.S. Treasury Department. It administers and enforces economic and trade sanctions in support of U.S. national security and foreign policy objectives.

Per Diem: (Latin for "per day" or "for each day") or daily allowance is a specific amount of money an organization gives an individual, often an employee, per day to cover living expenses when traveling for work. - Wikipedia (https://en.wikipedia.org)

Revenue: In accounting, revenue is the income that a business has from its normal business activities, usually from the sale of goods and services to customers. Revenue is also referred to as sales or turnover. Some companies receive revenue from interest, royalties, or other fees.

SDN - Specially Designated Nationals: The Specially Designated Nationals and Blocked Persons List, also known as the SDN List, is a United States government sanctions/embargo measure targeting U.S.-designated terrorists, officials and beneficiaries of certain authoritarian regimes, and international criminals

Stark Law: The Stark law prohibits a physician's referral for certain designated healthcare services (DHS) to an entity if the physician (or a member of the physician's immediate family) has a financial relationship with the entity unless the referral is protected by one or more exceptions provided in the law.

Sunshine Act: The Sunshine Act, which took effect on Aug. 1, 2013, states that manufacturers of drugs and medical devices are obligated to collect and track payment, transfer and ownership information for all exchanges made.

Supplier: A supplier is an entity that supplies goods and services to another organization. A supplier is usually a manufacturer or a distributor. A distributor buys goods from multiple manufacturers and sells them to its customers. Similar Terms. A supplier is also known as a vendor.

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 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.

Unclaimed Property: Unclaimed property (sometimes referred to as abandoned) refers to accounts in financial institutions and companies that have had no activity generated or contact with the owner for one year or a longer period. Common forms of unclaimed property include savings or checking accounts, stocks, uncashed dividends or payroll checks, refunds, traveler's checks, trust distributions, unredeemed money orders or gift certificates (in some states), insurance payments or refunds and life insurance policies, annuities, certificates of deposit, customer overpayments, utility security deposits, mineral royalty payments, and contents of safe deposit boxes.

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

  • Mary Schaeffer

CPE Credit

Continuing Professional Education

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ATATX Credit

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