On Demand Webinar

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

Please see below for additional instructions and information regarding this program.

Webinar Details$219

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

  1. Introduction

  2. What’s New  00:01:11

  3. The W-9 00:11:17

  4. The W-9 - When is Form W-9 Perjury Certification Required? 00:23:14

  5. The W-9 - Name and TIN “Cheat Sheet” 00:24:56

  6. The W-9 - Name and TIN “Cheat Sheet” (cont.) 00:26:15

  7. The W-9 - When to Get an Updated Form 00:29:08

  8. The W-9 -  Payee Refuses to Provide a TIN 00:35:19

  9. The W-9 - Payments Reportable on Forms 1099 00:37:54

  10. The W-9 - Identifying Your Payment: Exempt Payments 00:38:27

  11. The W-9 - Identifying your Payee: How to Know Who's Who 00:40:13

  12. The W-9 - U.S. Flags for Non-U.S. Payees 00:43:35

  13. The W-9 - Quick Review of Current “Problem Payee” Practices/Corporations 00:46:34

  14. The W-9 - LLC 00:48:22

  15. Validating Data - The Exempt Organization 00:50:09

  16. Validating Data - The Exempt Organization (cont.) 00:54:47

  17. E-Services and the TIN Match Program 00:55:32

  18. E-Services and the TIN Match Program (cont.) 00:57:15

  19. E-Services and the TIN Match Program (cont.) 00:58:13

  20. E-Services and the TIN Match Program (cont.) 00:58:59

  21. The W-9 to the 1099 - Requirements 01:01:22

  22. Backup Withholding 01:03:19

  23. Backup Withholding - Four Triggers 01:03:59

  24. Backup Withholding (cont.) 01:05:07

  25. Backup Withholding - Example 01:05:51, 01:06:04, 01:06:22, 01:06:39

  26. Backup Withholding - Form 945 and 941 01:07:07

  27. Backup Withholding - Form 945 and 941 (cont.) 01:08:30

  28. Common 1099 Mistakes: Attorney & Settlement Reporting 01:08:44

  29. Common 1099 Mistakes: Attorney & Settlement Reporting -Special Rules 01:12:57

  30. Common 1099 Mistakes: Rent, Prizes and Awards, medical Services Providers and Directors 01:14:49

  31. Penalty Notice Abatement Tips 01:20:35

  32. Protect Yourself 01:31:36

  33. Questions 01:34:20

  34. Closing 01:45:43

  • Backup Witholding 00:12:31, 00:35:35
  • B-Notice - 00:12:47, 00:16:08,  00:23:14, 01:04:18
  • C-Notice -  00:23:14, 01:04:19
  • Code Sections
  •     IRC Chapter 4 (FATCA) 00:01:11, 00:08:50, 00L19:08
  •     IRC Section 1441 00:01:11
  •     IRC Section 6041(a)  00:01:11
  •     IRC Section 6109(a)(2) 00:01:11, 00:08:52
  •     IRC Section 3406(a) 01:01:11
  • DBA -Doing Business As 00:53:15
  • Disregarded Entity 00:15:21, 00:16:22
  • D-Notice - 00:23:14, 01:04:31
  • EIN 00:25:58, 00:44:59
  • Exempt Payments 00:38:35
  • FATCA 00:18:36
  • Form 1042-S - 00:19:37, 00:41:40
  • Form 1099 - 00:37:58
  • Form 1099-B -  00:23:14
  • Form 1099-DIV -  00:23:14, 00:56:27
  • Form 1099-INT -  00:23:14, 00:56:27
  • Form 1099-MISC - 00:20:47, 00:56:27. 01:01:37, 01:16:30
  • Form 1099-OID -  00:23:14, 00:56:27
  • Form 1099-PATR -  00:23:14, 00:56:27
  • Form 8832 - 00:49:07
  • Form 941 - 01:07:07
  • Form 945 - 01:07:07
  • Form W-4 00:14:13
  • Form W-9 00:11:17
  • IRC 6050W 00:38:27
  • IRS Notice 972-CG - 01:20:35
  • ITIN - 00:44:59
  • Limited Liability Company (LLC) -00:15:58, 00:25:33, 00:48:32
  • Tax Cuts and Jobs Act 00:11:36
  • Tax Exempt Organization Search Tool 00:50:22
  • TIN Match Program 00:55:39
  • TIN 00:12:16, 00:24:56

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.

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)

D Notice: If you received an LT16 A/D notice, it's because he IRS is trying to collect unpaid taxes from you and/or their files show they're missing tax returns from you. It is essential that you take action in order to avoid potential enforcement action, which can include seizing your assets or wages. Enforcement action could also include the filing of a notice of federal tax lien, which could affect your credit score and ability to borrow.

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 Payments: Most taxpayers are entitled to an exemption on their tax return that reduces your tax bill in the same way a deduction does. Federal and state governments frequently exempt organizations from income tax entirely when it serves the public, such as with charities and religious organizations.

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)

Form 1042-S: 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.

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: Form 1099 is one of several IRS tax forms used in the United States to prepare and file an information return to report various types of income other than wages, salaries, and tips (for which Form W-2 is used instead). - Wikipedia (https://en.wikipedia.org/)

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 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)

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 941: Federal form 941, also called a quarterly federal tax return, is an IRS return that employers use to report their FICA taxes paid and owed for the period. The IRS uses this form to calculate the amount of employer tax payments made during the year as well as the amount of taxes due at the end of the year.

Form 945: IRS Form 945 is titled Annual Return of Withheld Federal Income Tax. Form 945 is used to report withheld federal income tax from nonpayroll payments, including distributions from qualified retirement plans.

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.

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 6050W : Section 6050W requires information returns to be made for each calendar year by merchant acquiring entities and third party settlement organizations with respect to payments made in settlement of payment card transactions and third party payment network transactions occurring in that calendar year.

IRC Chapter 4 (FATCA): Creates a due diligence obligation for US Withholding Agents to verify payee identity when it involves virtually any cross-border payment.

IRC Section 1441: Requires that, under certain circumstances, payers must perform 30% back up withholding on US sourced payments made to non-resident aliens.

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

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.

Tax Cuts and Jobs Act: The Act to provide for reconciliation pursuant to titles II and V of the concurrent resolution on the budget for fiscal year 2018, Pub.L. 115–97, is a congressional revenue act of the United States originally introduced in Congress as the Tax Cuts and Jobs Act, that amended the Internal Revenue Code of 1986.

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

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.

Guest Speaker

Steven Mercatante

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 webinars for Convey Compliance Systems, IAPP, Balance Consulting, The Accounts Payable Network, Accounts Payable Now and Tomorrow, Progressive Business Conferences, The Center For Competitive Management,... View Full Profile

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