W-9, The Perfect Start to Perfect 1099's

1. Introduction 
2. It All Starts With The Law 00:04:15
3. 1099-NEC 00:007:36
4. 1099-MISC 00:13:10
5. The Key to 1099 Compliance Is The W-9 00:15:16
6. Name and TIN “Cheat Sheet” 00:37:00
7. Name and TIN “Cheat Sheet” Cont’d 00:38:21
8. W-9 Best Practices - When to Get an Updated Form W-9 00:40:03
9. W-9 Best Practices - Payee Refuses to Provide a TIN 00:52:26
10. W-9 Best Practices - Identifying Your Payee: How to Know Who’s Who 00:57:09
11. W-9 Best Practices - U.S. Persons 00:59:33
12. W-9 Best Practices - W-9 Red Flags for Non-U.S. Payees 01:00:55
13. W-9 Best Practices - Problem Payees - U.S. Corporations 01:04:04
14. W-9 Best Practices - The LLC 01:07:14
15. W-9 Best Practices - The LLC as the Disregarded Entity 01:10:35
16. Validating Data –The Exempt Organization 01:12:01
17. Validating Payee Data –TIN Match Program 01:14:02
18. Validating Payee Data –TIN Match Program - Using The Tool 01:19:23
19. Validating Payee Data –TIN Match Program - Delegated Authority 01:19:25
20. Watch Out For The Middleman 01:19:30
21. Backup Withholding Basics 01:22:06
22. Backup Withholding Basics -  Four Triggers 01:23:51
23. B-Notice Response Best Practices - Reasons 01:25:24
24. B-Notice Response Best Practices - IRS Matches 01:30:30
25. B-Notice Response Best Practices - 1st Notice 01:32:15
26. B-Notice Response Best Practices - 2nd Notice 01:33:17
27. B-Notice Response Best Practices - Solicitations 01:34:46
28. B-Notice Response Best Practices - Final Thoughts 01:36:50
29. Protect Yourself 01:38:31
30. Attendee Questions 01:39:15
31. Presentation Closing 01:41:26

• 147C Letter 01:34:08
• Audit 00:58:18
• Backup Withholding 00:04:33, 00:08:37, 00:27:34, 00:52:31, 01:11:59, 01:22:06, 01:25:57, 01:32:57
• B-Notice 00:03:03, 00:40:12, 01:24:00, 01:28:25
• C-Notice01:24:03
• CP2000 00:03:13. 01:32:28
• DBA -Doing Business As 01:10:35
• Disregarded Entity 00:23:09, 00:37:57, 00:56:07
• Due Diligence 00:10:19, 00:26:05, 00:44:03, 01:13:42
• EIN 00:37:52, 00:39:38, 00:45:45, 00:47:39, 01:02:14, 01:16:10, 01:34:01
• Exempt 00:54:56, 01:12:09
• FATCA 00:25:01
• FIRE - File Information Returns Electronically 00:09:35
• Form 1042-S 01:00:54
• Form 1099-B 01:12:34
• Form 1099-DIV 01:12:34
• Form 1099-INT 01:12:34
• Form 1099-K 2:3401:1
• Form 1099-MISC 00:08:00, 00:12:52, 00:13:50
• Form 1099-NEC 00:07:59, 00:12:50, 01:22:58
• Form 1099-OID01:14:02
• Form 1099-PATR 01:14:02
• Form 8832 01:08:44
• Form 990 01:12:01
• Form W-8 01:00:53, 01:03:35
• Form W-9 00:00:06, 00:03:43, 00:13:32, 00:15:17, 00:25:29, 00:39:26, 00:47:49, 01:32:25
• Fringe Benefits 00:12:38
• Garnishment 01:20:19
• Golden Parachute Payments 00:13:10
• Independent Contractor 00:31:00, 01:22:06
• Information Returns Intake System (IRIS) 00:09:40, 00:10:26
• IRC Section 3406(a) 00:04:32, 00:54:12, 01:22:10
• IRC Section 6041(a) 00:04:23, 00:54:11
• IRC Section 6109(a)(2 00:04:27, 00:54:09
• ITIN 01:01:47
• Levy 01:20:40
• Limited Liability Company (LLC) 00:23:48, 00:34:02, 00:38:35, 01:07:15
• Nonresident Alien (NRA) 00:57:46
• Reasonable Cause 00:56:06
• Resident Alien 00:59:51, 01:01:55
• Sole Proprietor 00:23:18, 00:33:41, 00:47:28, 01:10:46
• Tax Exempt Organization Search Tool 01:12:26
• Tax Gap 00:05:05
• TIN 00:03:17, 00:17:06, 00:23:06, 00:27:22, 00:37:01, 00:39:49, 01:01:36, 01:11:58, 0126:01
• TIN Match Program 01:14:08
• Transaction 01:20:01
• Vendor 00:05:44, 00:08:51, 00:10:05, 00:22:56, 00:29:36, 01:31:49

147C Letter: The information on a 147C letter documents how an individual or business entity is filed with the Internal Revenue Service (IRS), and should match the information on business tax returns and 1099-K forms. The best way to request a 147C letter is to contact the IRS by phone

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 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.

CP2000: IRS notice CP2000 is a letter generated and sent to you by the IRS system when the information on your tax return doesn't match the income and payment information the IRS has on file for you. Usually, it means that you didn't report all of your income properly.

De Minimis: Too trivial or minor to merit consideration.

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)

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.

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

FACTA - Fair and Accurate Credit Transactions Act: The Fair and Accurate Credit Transactions Act (FACTA) is a federal law enacted by the United States Congress in 2003. Its stated purpose was to enhance consumer protections, particularly in relation to identity theft.

FIRE - File Information Returns Electronically: The IRS FIRE system is the electronic network used to accept and process most types of filing forms. Technically, it stands for File Information Returns Electronically.

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-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 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-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.

Garnishment: A legal summons or warning concerning the attachment of property to satisfy a debt

Golden Parachute Payments: Golden parachute payments are payments of compensation made to individuals whose companies experience a change in control

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.

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.

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/)

Information Returns Intake System (IRIS): The Information Returns Intake System (IRIS) Taxpayer Portal is a system that provides a no cost online. method for taxpayers to electronically file Form 1099 series. The Taxpayer Portal allows you to enter. data to create Forms 1099 by either keying in the information or uploading a .csv file.

Levy: A tax levy, under United States Federal law, is an administrative action by the Internal Revenue Service under statutory authority, generally without going to court, to seize property to satisfy a tax liability. The levy "includes the power of distraint and seizure by any means".

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.

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.

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.

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 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.

Transaction: In QuickBooks, a transaction type identifies what kind of transaction occurred, such as a customer transaction, bill payment or a bank transfer. When you submit a transaction, you type in a transaction code to represent it.

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.