W-9, The Perfect Start to Perfect 1099's
Please see below for additional instructions and information regarding this program.
- Filing Dates
- Increased Penalties
- 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
- 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
- WHO should receive a W-9
- Verify TIN, EIN, SSN with IRS e-services
- Most common mistakes on 1099’s
- What’s New 00:01:13
- What’s New - The 2020 Form 1099-NEC 00:06:05
- What’s New - The 2020 Form 1099-NEC - Reportable Payments 00:08:37
- What’s New - The 2020 Form 1099-NEC - Examples 00:13:34
- What’s New - The 2020 Form 1099-NEC - Non-Reportable Payments 00:16:42
- What’s New - The 2020 Form 1099-NEC - Other Implications 00:21:54
- What’s New - The 2020 Form 1099-MISC 00:30:47
- What’s New - The 2020 Form 1099-MISC - Boxes 1,2,3, and 6 00:39:28
- What’s New - The 2020 Form 1099-MISC - Non-Reportable Payments 00:54:31
- What’s New - The 2020 Form 1099-MISC - Related Implications 00:58:17
- What’s New - The 2020 Form 1099-MISC - Related Implications (cont’d) 01:06:28
- What’s New - The 2020 Form 1099-NEC and 1099-MISC - Your Action Steps 01:11:06
- 1099 Filing Starts with the W-9 01:12:46
- Watch Those TIN’s! 01:21:45
- Watch Those TIN’s! (cont;d) 01:22:13
- Payee Refuses to Provide TIN: What Do You Do? 01: 01:22:58
- You Must Perform Your Form W-9 Solicitations 01:23:44
- Problem Payees and 1099 Due Diligence - 01:25:25
- Problem Payees and 1099 Due Diligence - The LLC 01:26:25
- Problem Payees and 1099 Due Diligence -The LLC as the Disregarded Entity 01:28:51
- Problem Payees: The Exempt Organization and Due Diligence 01:29:33
- TIN Matching and 1099 Due Diligence 01:30:18
- Backup Withholding Policies and Due Diligence 01:31:10
- B-Notice Response Best Practices 01:31:57
- IRS Form 942-CG Proposed Penalty Notice and Reasonable Cause 01:22:39
- IRS Form 942-CG Proposed Penalty Notice and Reasonable Cause (cont’d) 01:33:25
- IRS Form 942-CG Proposed Penalty Notice and Reasonable Cause (cont’d) 01:34:29
- Protect Yourself 01:35:43
- Attendee Questions 01:36:46
- Presentation Closing 01:43:39
- Audit 00:01:39
- Backup Withholding 00:58:57
- B-Notice 01:04:12, 01:06:22
- C Corporations 01:17:12
- CP-2100 01:31:57
- CP-2100-A 01:31:57
- DBA -Doing Business As 01:15:05, 01:27:21
- Disregarded Entity 01:15:25, 01:22:08
- EIN 01:21:59
- FATCA 01:19:15
- Form 1042 00:01:13
- Form 1042-S 00:01:13
- Form 1099-B 01:30:18, 01:31:57
- Form 1099-DIV 01:30:18, 01:31:57
- Form 1099-INT 01:30:18, 01:31:57
- Form 1099-K 01:30:18, 01:31:57
- Form 1099-MISC 00:07:04, 00:29:12, 00:39:32, 00:54:36, 01:31:57
- Form 1099-NEC 00:06:13, 00:10:36, 01:31:57
- Form 1099-OID 01:30:18, 01:31:57
- Form 1099-PATR 01:30:18, 01:31:57
- Form 8832 01:28:51
- Form 990 01:29:58
- Form W-9 00:06:36, 00:10:48, 00:19:45, 00:58:52, 01:12:49
- Fringe Benefit 00:13:48
- Golden Parachute Payments 00:37:09
- IRC Section 3406(a) 00:01:13
- IRC Section 6041(a) 00:01:13
- IRC Section 6109(a)(2) 00:01:13
- IRS Notice 972CG 01:22:39
- Limited Liability Company (LLC) 00:10:00, 01:14:44, 01:22:26
- Safe Harbor 01:13:39
- S Corporation 01:17:13
- Sole Proprietor 01:14:42, 01:15:38
- Tax Exempt Organization Search Tool 01:29:52
- Tax Gap 00:01:23
- TIN 00:10:46, 00:59:03, 01:15:02
- TIN Match Program 01:04:06
Audit: A formal examination of an organization's or individual's accounts or financial situation
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)
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.
C Corporations : 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. Large volume filers will receive a CD or DVD data file CP2100, mid-size filers receive a paper CP2100, and small 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 is accompanied by a listing of missing, incorrect, and/or not currently issued payee TINs. Large volume filers will receive a CD or DVD data file CP2100, mid-size filers receive a paper CP2100, and small 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.
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: 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 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-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 8233: IRS Form 8233 must be completed when a non U.S. citizen is claiming tax treaty exemption from income taxes for income received for services provided as an independent contractor.
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/)
Fringe Benefits: An extra benefit supplementing an employee's salary, for example, a company car, subsidized meals, health insurance, etc.
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.
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.
Safe Harbor: A safe harbor is a provision of a statute or a regulation that specifies that certain conduct will be deemed not to violate a given rule. It is usually found in connection with a vaguer, overall standard. Under the safe harbor, a “rental real estate enterprise” is treated as a trade or business for purposes of Sec. 199A if at least 250 hours of services are performed each tax year with respect to the enterprise. ... The safe harbor requires that separate books and records be maintained for the rental real estate enterprise.
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.
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.
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.
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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