Form 1099 Essentials

1. Introduction
2. The Law – Learn it, Know it, Live it 00:01:01
3. What’s New In 1099 E-Filing - Big 1099/W-2 E-Filing Changes 00:11:48
4. What’s New In 1099 E-Filing - Using IRIS A2A Connection Point 00:17:32
5. Draft 2026 Form 1099-NEC 00:20:56
6. New 2026 Form 1099-MISC 00:30:52
7. 1099-MISC Box One - Rent and Reporting Exceptions 00:32:50
8. 1099-MISC Box One - Special Form 1099-S Issue 00:36:03
9. 1099-MISC Box Two - Extractive Industries 00:38:05
10. 1099-MISC Box Two - Creative Industries 00:38:32
11. 1099-MISC Box Two - I.P./Intellectual Property 00:38:45
12. 1099-MISC Box Two - Royalty Type 00:39:50
13. 1099-MISC Box Three - Prizes and Awards 00:40:29
14. 1099-MISC Box Three - Settlement Payments 00:41:39
15. 1099-MISC Box Four - Backup Withholding 00:43:22
16. 1099-MISC Box Six - Reportable Payments 00:43:54
17. 1099-MISC Box Six - No Corporate Exception 00:44:24
18. 1099-MISC Box Six - Examples of Exceptions 00:45:53
19. 1099-MISC Box Ten - Legal Services 00:46:13
20. 1099-MISC Director’s Payments 00:48:51
21. Proposed W-9 Changes 00:50:55
22. Name and Tin “Cheat Sheet” (skipped)
23. Name and Tin “Cheat Sheet” (skipped)
24. Validating W-9 Data - When to Get an Updated Form W-9 01:02:12
25. Validating W-9 Data - Identifying Your Payment: Exempt Payments 01:06:23
26. Validating W-9 Data - Identifying Your Payee: How to Know Who’s Who 01:
27. Validating W-9 Data -  U.S. Persons 01:09:24
28. Validating W-9 Data - Problem Payees 01:10:01
29. Validating W-9 Data - The LLC 01:10:57
30. Validating W-9 Data - The LLC as the Disregarded Entity 01:12:05
31. Validating W-9 Data - Tax Exempt Organization Search Tool 01:14:15
32. Validating W-9 Data: Watch Out For The Middleman 01:15:55
33. TIN Match Program - Using The Tool 01:18:10
34. TIN Match Program - Delegated Authority 01:19:28
35. Cutting Down on Corrections - Reasons Why 01:20:21
36. Cutting Down on Corrections - Tax Implications 01:23:46
37. Cutting Down on Corrections - Proposed Penalties 01:24:09
38. Backup Withholding Tips - IRC Section 3406 01:26:04
39. Backup Withholding Tips - Four Triggers 01:26:17
40. Backup Withholding Tips - B-Notice Situations 01:27:29
41. B-Notice Response Best Practices - B-Notice: CP-2100 01:27:56
42. B-Notice Response Best Practices - IRS Matching 01:30:34
43. B-Notice Response Best Practices - 1st Notice 01:31:16
44. B-Notice Response Best Practices - 2nd Notice 01:32:17
45. IRS Form 972-CG Proposed Penalty Notice and Reasonable Cause - IRS Notice 972-CG “Proposed Penalty Notice” 01:34:01
46. IRS Form 972-CG Proposed Penalty Notice and Reasonable Cause - IRS Notice 972-CG “Proposed Penalty Notice” Contents 01:35:00
47. IRS Form 972-CG Proposed Penalty Notice and Reasonable Cause - Responding 01:35:16
48. IRS Form 972-CG – Proving Reasonable Cause: An Overview 01:36:09
49. IRS Form 972-CG Proposed Penalty Notice and Reasonable Cause - Penalty Waiver Request Letter 01:36:52
50. IRS Form 972-CG Proposed Penalty Notice and Reasonable Cause - Reasonable Cause and Written Guidance 01:37:05
51. Protect Yourself 01:38:26

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  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 [...]

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• Accounts Payable (AP) 00:01:05, 00:42:16, 00:48:43, 00:58:19
• Audit 00:10:59, 00:15:17, 00:18:17, 00:57:16, 01:08:06
• B-Notice 01;26:18, 01:28:00, 01:29:48, 01:32:44
• Backup Withholding 00:23:35, 00:43:22, 00:55:13, 01:26:06, 01:31:10
• CP-2100 01:26:22, 01:29:46, 01:30:30
• DBA -Doing Business As 00:52:43, 01:32:07
• Disregarded Entity 00:52:50, 00:53:52, 01:00:13, 01:31:56
• EIN 00:24:29, 00:53:04, 01:00:23, 01:04:19, 01:40:15
• Exempt 00:44:40, 01:11:35, 01:23:33
• FATCA 00:55:18, 00:58:12
• Form 1042-S  00:01:37, 00:58:14
• Form 1099-MISC 00:16:14, 00:21:59, 00:30:17, 00:32:15, 00:43:38, 01:16:54, 01:40:29
• Form 1099-NEC 00:20:22, 00:22:10, 00:32:14, 00:35:57, 00:44:20
• Form 1099-S 00:36:21
• Form 8832 01:11:43
• Form 990 01:14:41
• Form W-2 00:12: 37, 00:20:22, 00:27:26, 01:06:59, 01:16:58
• Form W-9 00:04:35, 00:13:13, 00:24:54, 00:27:25, 00:34:55, 00:47:38, 00:51:01, 01:00:00, 01:22:34, 01:30:24, 01:36:47
• Independent Contractor 00:11:35, 00:21:34, 00:24:40, 00:35:00, 00:53:28, 01:03:33, 01:1:15, 01:21:56, 01:40:25
• Information Returns Intake System (IRIS) 00:12:24, 00:16:23, 00:18:54
• Invoice 01:04:24, 01:10:30
• IRC Section 3406(a) 00:11:19
• IRC Section 6041(a) 00:11:10
• IRC Section 6109(a)(2) 00:11:14, 00:24:43, 00:51:31
• IRC Section 6724 00:10:49, 01:35:16
• IRIS Application-to-Application (A2A) Connection Point 00:18:34
• IRS Form 972-CG 01:34:26
• Liability 00:48:48
• Limited Liability Company (LLC) 00:52:41, 01:00:34, 01:11:33, 01:31:57
• Reasonable Cause 00:10:43, 01:13:27
• Sole Proprietor 00:52:40, 01:04:40, 01:32:03
• Tax Exempt Organization Search Tool 01:14:33
• Tax Gap 00:08:45, 01:29:12
• TIN 00:24:39, 00:51:38, 00:53:06, 01:00:09, 01:13:16, 01:22:07, 01:30:28, 01:40:20
• TIN Match Program 01:09:13, 01:35:50
• Vendor 00:11:35, 00:24:49, 01:26:09

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

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.

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."

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.

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

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 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-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-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 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/)

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 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.

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.

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.

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.

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 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.