On Demand Webinar

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

Webinar Details $219

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

What’s New

  • Filing Dates
  • Increased Penalties

Questions Answered:

  • WHO should receive a W-9
  • WHO is responsible for the accuracy of W-9 information
  • WHAT does “disregarded entity” mean
  • WHAT is the importance of “tax classification”
  • WHEN are W-9’s due to Payees
  • WHEN should W-9’s be rejected & re-sent to Payees
  • HOW can I avoid name & TIN mismatch problems

Time-Saving Tips:

  • Advantages of IRS e-services
  • Verify TIN, EIN, SSN with IRS e-services
  • Train staff to verify the correctness of W-9 information
  • Train staff when to backup withholding
  • Most common mistakes on 1099’s
  • Tips on avoiding IRS penalties
  • Importance of Procedural Manual & staff training

Learning Objectives:

  • WHO should receive a W-9
  • Verify TIN, EIN, SSN with IRS e-services
  • Most common mistakes on 1099’s

Level: Basic
Format: Live webcast
Instructional Method: Group: Internet-based
NASBA Field of Study: Taxes 
Program Prerequisites: None
Advance Preparation: None

  1. Introduction 
  2. What’s New - The Tax Gap 00:01:12
  3. What’s New - 2022 Final Rules 00:16:59
  4. What’s New - E-Filing Basics 00:23:06
  5. What’s New: 1099 NEC and 1099 MISC 00:34:57
  6. The Form 1099 NEC Box One -  Reportable Payments 00:43:22
  7. The Form 1099 NEC Box One - Things To Watch Out For 00:45:46
  8. 1099-MISC Box One Issues 00:49:21
  9. 1099-MISC Box Two Issues 00:50:49
  10. 1099-MISC Box Three Issues 00:52:09
  11. 1099-MISC Box Six Issues 01:02:00
  12. 1099 MISC Boxes 12 and 15 vs. 1099-NEC Box One Director’s Payments 00:54:18
  13. It All Starts With The W-9 00:55:36
  14. It All Starts With The W-9: Name and TIN “Cheat Sheet” 01:05:17
  15. It All Starts With The W-9: Name and TIN “Cheat Sheet” Cont’d 01:05:37
  16. It All Starts With The W-9 - When to Get an Updated Form W-9 01:06:39
  17. It All Starts With The W-9 - Payee Refuses to Provide a TIN 01:09:50
  18. It All Starts With The W-9 - Identifying Your Payee 01:12:23
  19. It All Starts With The W-9 - U.S. Persons 01:15:30
  20. It All Starts With The W-9 - W-9s and Corporations 01:15:54
  21. It All Starts With The W-9 - The LLC 01:18:15
  22. It All Starts With The W-9 - The LLC as the Disregarded Entity 01:18:54
  23. It All Starts With The W-9- Tax Exempt Organization Search Tool 01:19:29
  24. It All Starts With The W-9- IRS TIN Match Program 01:20:17
  25. It All Starts With The W-9 - The W-9 and Vendors 01:22:11
  26. It All Starts With The W-9 - Using The Tool 01:23:19
  27. It All Starts With The W-9 - Delegated Authority 01:23:55
  28. It All Starts With The W-9 - The Middleman 01:24:01
  29. Final W 9 Reminders 01:28:04
  30. Protect Yourself 01:31:44
  31. Attendee Questions 01:32:47
  32. Presentation Closing 01:41:39

      • Audit 00:03:58, 01:06:38
      • Backup Withholding 00:01:43, 00:09:27, 00:56:42, 01:03:27, 1:13:40
      • B-Notice 00:03:54, 00:09:34, 00:10:16, 01:21:24
      • C Corporation 01:18:35
      • CP-2100 00:10:30
      • CP-2100A 00:10:31
      • Disregarded Entity 01 00:59:24
      • EIN 01:05:45
      • Fair Market Value (FMV) 00:52:09
      • FATCA 00:36:57,  00:43:37, 00:57:47
      • FIRE - File Information Returns Electronically 00:18:01, 00:23:13, 00:29:31, 00:48:02
      • Form 1042-S 00:17:50, 00:28:46, 01:13:37
      • Form 1099-DIV 01:21:01
      • Form 1099-INT 01:21:01
      • Form 1099-K 01:21:01 
      • Form 1099-MISC 00:35:12, 00:43:37, 01:21:01
      • Form 1099-MISC 01:21:01
      • Form 1099-NEC 00:28:50, 00:35:12, 01:21:01
      • Form 1099-OID 01:21:01
      • Form 1099-PATR 01:21:01
      • Form 8832 01:18:15
      • Form 990 01:20:07
      • Form W-2 00:54:32
      • Form W-9 00:01:22, 00:01:57, 00:08:26, 00:20:50, 00:33:49, 00:37:49, 00:43:39, 00:51:04, 00:54:56, 01:18:49
      • IRC Section 3406(a) 00:01:12
      • IRC Section 409A 00:55:24
      • IRC Section 6041(a) 00:08:15
      • IRC Section 6045 00:53:56
      • IRC Section 6109(a)(2) 00:08:21, 0:55:52
      • ITIN 00:57:04, 01:14:06
      • Limited Liability Company (LLC) 00:49:53. 00:59:30, 01:18:15
      • Nonqualified Deferred Compensation (NQDC) 00:55:19
      • Nonresident Alien (NRA) 00:01:34, 01:12:31, 01:15:40
      • Reasonable Cause 01:08:00, 01:24:14
      • Resident Alien 00:01:38, 00:57:14, 01:14:09
      • S Corporation 01:18:35
      • Sole Proprietor 00:59:28, 01:05:24, 01:11:41
      • Substantial Presence Test (SPT) 01:14:17
      • Tax Exempt Organization Search Tool 01:19:48, 01:21:39
      • Tax Gap 00:03:55, 00:04:10
      • TIN 00:02:04, 00:08:35, 00:09:44, 00:50:43, 00:59:08, 01:19:08
      • TIN Match Program 01:20:38
      • Transmitter Control Code (TCC) 00:17:05, 00:21:31, 00:23:13
      • Vendors 00:09:06, 00:17:50, 00:38:01, 00:47:46, 00:56:10, 01:20:27, 01:26:13

      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 Corporation: A C corporation, under United States federal income tax law, refers to any corporation that is taxed separately from its owners. A C corporation is distinguished from an S corporation, which generally is not taxed separately. Most major companies are treated as C corporations for U.S. federal income tax purposes.

      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.

      CP2100-A: It is a notice that tells a payer that he or she may be responsible for backup withholding. It isaccompanied 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.

      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.

      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.

      Fair Market Value (FMV): The term fair market value is used throughout the Internal Revenue Code among other federal statutory laws in the USA including Bankruptcy, many state laws, and several regulatory bodies. In litigation in many jurisdictions in the United States, the fair market value is determined at a hearing.

      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 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 4419: Form 4419 is mandated to be electronically filed when requesting an original TCC (first-time application).

      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-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 409A: Section 409A of the United States Internal Revenue Code regulates nonqualified deferred compensation paid by a "service recipient" to a "service provider" by generally imposing a 20% excise tax when a certain design or operational rules are contained in the section are violated.

      IRC Section 6041(a): Provides that persons engaged in trade or business must report certain payments on an information return.

      IRC Section 6045: Every person doing business as a broker shall, when required by the Secretary, make a return, in accordance with such regulations as the Secretary may prescribe, showing the name and address of each customer, with such details regarding gross proceeds and such other information as the Secretary may by forms or regulations require with respect to such business.

      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.

      Liabilities (current and long-term) (CL, LTL): A company's debts or financial obligations incurred during business operations. Current liabilities (CL) are those debts that are payable within a year, such as a debt to suppliers. Long-term liabilities (LTL) are typically payable over a period of time greater than one year. An example of a long-term liability would be a multi-year mortgage for office space.

      Nonqualified Deferred Compensation (NQDC): A nonqualified deferred compensation (NQDC) plan is an elective or non-elective plan, agreement, method, or arrangement between an employer and an employee (or service recipient and service provider) to pay the employee or independent contractor compensation in the future. (www.irs.gov)

      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.

      S Corporation: An S corporation, for United States federal income tax, is a closely held corporation that makes a valid election to be taxed under Subchapter S of Chapter 1 of the Internal Revenue Code. In general, S corporations do not pay any income taxes.

      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.

      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.

      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.

      Transmitter Control Code (TCC): The Transmitter Control Code (TCC) is an identifier that the IRS uses to distinguish different electronic filing companies. It's necessary when you need to file for a correction. Getting a TCC depends on how you file your 1099 forms

      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

      • Steven Mercatante

      CPE Credit

      Continuing Professional Education

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      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.

      IRS Credit

      Preparer Tax Identification Number

      ATATX Credit

      Aurora Training Advantage is offering continuing education points designed to recognize dedication to training and excellence in accounting.