Best Accounts Payable Compliance Practices: TIN Solicitation, Sales Use Tax & Unclaimed Property
Please see below for additional instructions and information regarding this program.
Regulatory compliance, no matter how nit-picky and annoying it may be, is a fact of life for all accounts payable organizations. And doing it incorrectly is not an option. It can result in increased scrutiny by regulatory authorities, fines, penalties and ultimately more work in accounts payable as you sort out the mess created by the non or incomplete compliance.
The most common tasks, falling onto almost all organizations are the proper collection and verification of taxpayer identification numbers (TINs), the management of the sales and use tax information and payments and reporting and remitting unclaimed property. At least with the last one, if you take the proper steps (which we will discuss in our webinar) you will be able to reduce that workload.
After this session, you will be able to:
•Understand why you should be collecting TINs
•Identify best regulatory practices to be used when TINs
•Weed out practices related to sales tax and unclaimed property that will get you in trouble with state auditors
•Pinpoint commonly over-looked areas where sales tax should be accrued
•Create practices that will allow you to minimize the amount of unclaimed property to be reported and remitted
- Who Is Eligible to Use 00:35:51
- Additional Reading 00:36:24
- New Best Practice #1 00:36:55
- New Best Practice #2 00:37:53
- To Summarize 00:39:24
- Suggestion 00:40:00
- Reminders 00:41:14
- One Last Suggestion 00:42:43
- Remember 00:44:10
- Sales and Use Tax 00:44:50
- Sales Tax 00:45:06
- Sales Tax Complication 00:45:55
- What Rate? 00:46:37
- What Not Taxable? 00:47:36
- Sales Tax Best Practices 00:48:58
- Nexus 00:50:44
- Use Tax 00:52:00
- Use Tax (cont’d) 00:52:43
- Use Tax Don’ts 00:52:56
- Nothing Set in Stone 00:54:07
- Resources 00:54:21
- If You Are Audited 00:54:35
- Unclaimed Property 00:54:59
- Unclaimed Property (con’td) 00:55:02
- How Do You Handle Uncashed Checks? 00:55:24
- Where UP Auditors Look 00:56:07
- Where AP Has Unclaimed Property 00:56:25
- Never, Never, Never 00:56:38
- Unclaimed Property 00:57:01
- Auditors 0057:36
- Audits 00:57:54
- Avoiding Unclaimed Property 00:58:22
- Thank You/Questions/Comments 00:58:45
- Presentation Closing 01:00:23
- ATIN 00:06:38
- Audit 00:57:38
- B-Notice 00:02:57, 00:08:19
- EIN 00:04:49
- Form 1099-B 00:27:41
- Form 1099-DIV 00:27:41
- Form 1099-INT 00:27:41
- Form 1099-K 00:43:27
- Form 1099 MISC 00:27:41
- Form 1099-OID 00:27:41
- Form 1099-PATR 00:27:41
- Form W-9 00:07:03, 00:17:41, 00:37:09
- ITIN 00:05:36
- Limited liability company (LLC) 00:16:22
- TIN 00:01:45, 00:11:41
- TIN Match Program 00:17:52, 00:28:07, 00:37:11
- Vendor 00:12:23
ATIN: An Adoption Taxpayer Identification Number (ATIN) is a temporary nine-digit number issued by the IRS to individuals who are in the process of legally adopting a U.S. citizen or resident child but who cannot get an SSN for that child in time to file their tax return.
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.
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.
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-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 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/)
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.
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.
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.
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.
Mary S. Schaeffer is the founder of AP Now, a B2B organization focused on creating business intelligence around the accounts payable and payment functions. She has written 18 business books and is a frequent and popular speaker at both online and live events. Schaeffer has created a number of CPE self-study courses, customized training and online training events. She is the developer of the Accounts Payable Best Practice Certificate program. Previously she held positions as an Assistant Treasure... View Full Profile
Aurora Training Advantage is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be submitted to the National Registry of CPE Sponsors through its website: www.nasbaregistry.org.
For more information regarding administrative policies such as complaint and refund, and cancellation please contact our offices at 407-542-4317 or firstname.lastname@example.org.
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.
This program has been approved for credit hours through the HR Certification Institute. For more information about certification or recertification, please visit the HR Certification Institute website at www.hrci.org.
Aurora Training Advantage is recognized by SHRM to offer Professional Development Credits (PDCs) for the SHRM-CPSM or SHRM-SCPSM. For more information about certification or recertification, please visit www.shrmcertification.org.