On Demand Webinar

Best Practices and Tips for Handling Recent Changes to Forms W-8 and W-9

Webinar Details $219

  • Rated:
  • Webinar Length: 100 Minutes
  • Guest Speaker:   Steven Mercatante
  • Topic:   Taxation and Accounting
  • Credit:   HRCI 1.5, SHRM 1.5, CPE 2.0
All Access Membership

Those making certain payments to non-employees must regularly deal with Forms W-9, W-8 or 8233, detailing specific information about the payee. Beyond regulating withholding, payers must make sure that the forms are current, complete and accurate. How can you ensure a proper form that will not subject your company to penalties, interest or tax? Join us for this webinar where you and your colleagues will discover:

•    How to accurately acquire information from payees
•    When you need and do not need to collect a Form W-9
•    Work effectively with vendors: Techniques for success
•    When to use each form W-8: Scenarios to consider
•    Discover how the latest changes can affect your business
•    Data points to capture from Forms W-8: Ensure compliance
•    Form W-8 & W-9 red flags: Spot them before it's too late
•    Keys to effectively validate and review your forms

Learning Objectives:

•    How to accurately acquire information from payees
•    When you need and do not need to collect a Form W-9
•    Work effectively with vendors: Techniques for success

  1. Introduction
  2. What’s New 00:01:18
  3. The W-9 00:09:49
  4. The W-9 - When is Form W-9 Perjury Certification Required? 00:
  5. The W-9 - Name and TIN “Cheat Sheet” 00:19:16
  6. The W-9 - Name and TIN “Cheat Sheet” (cont.) 00:20:27
  7. The W-9 - Due Diligence -When to Get Updated Form W-9 00:21:34
  8. Important W-9 Best Practices 00:28:40
  9. The W-9 - “Not Taking No”  In Response To Your Completion Request- Payee Refuses to Provide a TIN 00:30:54
  10. Your W-9 Baseline 00:34:52
  11. Validating W-9 Data  - 00:35:34
  12. Validating W-9 Data  - Identifying Your Payee 00:37:18
  13. Validating W-9 Data  - U.S. Persons 00:41:51
  14. Validating W-9 Data  - W-9 Red Flags For Non-U.S. Payees 00:44:18
  15. The W-9 - Problem Payees 00:50:03
  16. Validating W-9 Data- The Exempt Organization 00:54:21
  17. Validating W-9 Data - TIN Match Program 00:55:30
  18. Validating W-9 Data - TIN Match Program (Cont’d) 00:55:44
  19. Validating W-9 Data - TIN Match Program (Cont’d) 00:59:09
  20. Validating W-9 Data - TIN Match Program - Penalty Abatement and TIN Matching 01:00:48
  21. W-9/W-8 Data Collection and Validation 01:02:10
  22. W-9/W-8 Data Collection and Validation - Doubting the Documentation 01:12:05
  23. W-9/W-8 Data Collection and Validation Can Flow Together - Presumptions 01:13:46
  24. W-9/W-8 Data Collection and Validation Can Flow Together - Presumptions (cont’d) 01:14:20
  25. Must Have a W-9/W-8 Due Diligence Framework - Payments and Payees 01:14:38
  26.  W-9/W-8 Payee/Payment in Practice 01:15:29
  27. Who is My Payee - Non-U.S. Staus Red Flags 01:16:20
  28. Who is My Payee - W-9 vs. W-8 Resident Alien Visas  -  Determining Payee Tax Status 01:19:38
  29. Who is My Payee - W-9 vs. W-8 Resident Aliens and Counting Days - Determining Payee Tax Status 01:22:17
  30. Who is My Payee - W-9 vs. W-9 Basic Rules 01:23:02
  31. Who is My Payee - Special Entity Rules 01:24:15
  32. W-8 Payment Sourcing 01:25:02
  33. W-8’s and Treaty Benefits 01:33:43
  34. Final W-8 Tips 01:36:13
  35. Protect Yourself 01:37:4
  36. Attendee Questions 01:39:25
  37. Presentation Closing 01:44:39

  • 509(a)(a) 00:35:34
  • Audit 00:04:52
  • Backup Withholding 00:10:44, 00:32:24
  • B-Notice  00:14:18, 00:56:38
  • DBA -Doing Business As 00:13:24
  • Disregarded Entity 00:13:56, 00:14:33, 00:52:17
  • EIN 00:19:39, 00:26:26, 00:47:50
  • FATCA 00:10:52, 00:17:05
  • Form 1042 00:02:08
  • Form 1042-S 00:02:08, 00:33:01
  • Form 1099-B 00:55:30
  • Form 1099-DIV 00:55:30
  • Form 1099-INT 00:55:30
  • Form 1099-MISC  00:02:05, 00:35:41
  • Form 1099-NEC 00:02:00, 00:35:41
  • Form 1099-OID 00:55:30
  • Form 1099-PATR 00:55:30
  • Form 8832 00:51:45, 01:34:06
  • Form 990 00:54:44
  • Form W-4 00:10:16
  • Form W-8  00:01:31, 01:02:16
  • Form W-9 01:29, 00:10:50, 00:13:59, 00:52:31
  • IRC Section 3406(a) 00:32:26
  • IRC Section 6109(a)(2) 00:21:47, 00:31:12
  • ITIN 00:46:07
  • Limited Liability Company (LLC) 00:14:24, 00:51:17
  • Nonresident Alien (NRA) 00:01:38, 00:18:23, 00:37:33, 00:46:49, 01:02:49, 01:19:44
  • Resident Alien 00:01:39, 00:46:35, 01:19:44
  • Sole Proprietor 00:14:29, 00:19:35
  • Substantial Presence Test (SPT) 01:03:14
  • Tax Exempt Organization Search Tool 00:54:37
  • Tax Gap 00:02:37
  • TIN 00:10:29, 00:13:20, 00:19:18, 00:45:57
  • TIN Match Program 00:55:40
  • W-8BEN 01:10:20
  • W-8BEN-E 01:06:36
  • W-8ECI 01:10:33
  • W-8EXP 01:02:10
  • W-8IMY 01:10:14

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.

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)

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)

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)

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 3406(a): Requires that, under certain circumstances, including the payee's failure to provide a TIN, the payer must perform backup withholding.

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/)

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.

Tax Exempt Organization Search Tool: Tax Exempt Organization Search helps users find information about a tax-exempt organization’s federal tax status and filings.

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."

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.

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-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 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 W-4: Form W-4 (otherwise known as the "Employee's Withholding Allowance Certificate") is an Internal Revenue Service (IRS) tax form completed by an employee in the United States to indicate his or her tax situation (exemptions, status, etc.) to the employer.

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.

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.

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.

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.

Audit: A formal examination of an organization's or individual's accounts or financial situation

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.

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.

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.

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.

509(a)(a): Primarily includes churches, schools, hospitals, and other organizations that receive their public support primarily from gifts, grants and contributions from a broad group of people.

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.

W-8BEN-E: W-8BEN-E is an important tax document which allows businesses operating outside of the U.S. to claim tax exemption on U.S.-sourced income. The official document title is Certificate of Status of Beneficial Owner for United States Tax Withholding and Reporting (Entities).

W-8BEN: Form W8-BEN, Certificate of Foreign Status of Beneficial Owner for U.S. Tax Withholding, is used by a foreign person to establish both foreign status and beneficial ownership, and to claim income tax treaty benefits with respect to income other than compensation for personal services. Give Form W-8 BEN to the withholding agent or payer if you are a foreign person and you are the beneficial owner of an amount subject to withholding. Submit Form W-8 BEN when requested by the withholding agent or payer whether or not you are claiming a reduced rate of, or exemption from, withholding.

W-8ECI: Form W-8ECI is the Certificate of Foreign Person's Claim for Exemption From Withholding on Income Effectively Connected with the Conduct of a Trade or Business in the United States. You must give Form W-8 ECI to the withholding agent or payer if you are a foreign person and you are the beneficial owner of U.S. source income that is (or is deemed to be) effectively connected with the conduct of a trade or business within the United States.

W-8IMY: This form may serve to establish foreign status for purposes of sections 1441, 1442, and 1446. The W-8IMY is used by an intermediary, a withholding foreign partnership, a withholding foreign trust, or flow-through entity.

W-8EXP: A foreign government must provide Form W-8EXP to establish eligibility for exemption from withholding for payments exempt from tax under section 892 or for purposes of establishing its status as an exempt beneficial owner.

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.

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.


Guest Speaker

  • Steven Mercatante

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