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, ATATX 1.5
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
  1. Introduction
  2. IRS Focus: The Tax Gap 00:01:11
  3. The Law 00:07:31
  4. What’s New Big 1099 Filing Changes - Changes To FIRE 00:15:18
  5. What’s New Big 1099 Filing Changes - IRS Requirements 00:18:39
  6. What’s New - Big Filing Changes Coming - New Corrections Processing Rules 00:23:14
  7. What’s New - The 2021 Form 1099-NEC 00:27:48
  8. What’s New - The 2021 Form 1099-NEC - Reportable Payments 00:32:23
  9. 1099 NEC Attorney/Settlement Issues 00:36:43
  10. What’s New - The 2021 Form 1099-NEC 00:40:57
  11. What’s New - The 2021 Form 1099 MISC 00:45:36
  12. Watch Out -  Be Careful Differentiating 1099-NEC From Certain 1099-MISC Payments 00:46:13
  13. The 2021 Form 1099 MISC is Still A Packed Form - Non-Reportable Payments  00:48:07
  14. The 2021 Form 1099 NEC vs. 1099 MISC - Your Action Steps  00: 48:58
  15.  It All Starts With The W 9 00:53:00
  16. 1099’s Start With The W 9: Name and TIN “Cheat Sheet”  01:02:56
  17. 1099’s Start With The W 9: Name and TIN “Cheat Sheet” Cont’d  00:03:53
  18. It All Starts With The W 9 - When to Get an Updated Form W-9  01:04:57
  19. It All Starts With The W 9 - Payee Refuses to Provide a TIN  01:10:50
  20. It All Starts With The W 9 -  Identifying Your Payee: Who is 1099 Reportable? 01:13:36
  21. It All Starts With The W 9 - U.S. Persons 01:14:59
  22. It All Starts With The W 9 - W 9s and Corporations 01:19:05
  23. It All Starts With The W 9 -  The LLC  01:20:16
  24. It All Starts With The W 9 - The LLC as the Disregarded Entity 01:22:05
  25. It All Starts With The W 9 - The Exempt Organization - Tax Exempt Organization Search Tool 01:23:05
  26. It All Starts With the W 9: TIN Match Program 01:24:21
  27. It All Starts With the W 9: TIN Match Program - The W-9 and Vendors 01:
  28. It All Starts With the W 9: TIN Match Program - Using The Tool 01:27:39
  29. It All Starts With the W 9: TIN Match Program - Delegated Authority 01:27:55
  30. It All Starts With the W 9: The Middleman 01:28:04
  31. The W 9 and B Notices -  Reason For a B-Notice 01:27:47
  32. The W 9 and B Notices -  IRS Matching 01:30:34
  33. The W 9 and B Notices - 1st Notice 01:30:45
  34. The W 9 and B Notices - 2nd Notice 01:31:23
  35. Protect Yourself 01:33:09
  36. Attendee Questions 01:34:11
  37. Presentation Closing 01:42:38
  • Audit 00:02:11
  • Backup Withholding 00:08:33, 00:11:10, 00:38:48, 00:49:09, 01:10:53
  • B-Notice 00:03:56, 00:51:44, 01:04:01
  • CP-2100 00:03:36, 01:30:22
  • CP-2100-A 01:30:22
  • DBA -Doing Business As 00::54:29
  • Disregarded Entity 00:54:29
  • EIN 01:03:38, 01:08:46
  • FIRE - File Information Returns Electronically 00:16:09
  • Form 1042 01:14:34
  • Form 1042-S 0114:35:
  • Form 1099-B 01:24:21
  • Form 1099-DIV 00:22:47
  • Form 1099-INT 01:24:21
  • Form 1099-K 01:24:21
  • Form 1099-MISC 00:05:53, 00:27:33, 00:45:36
  • Form 1099-NEC 00:05:51, 00:27:30, 00:27:53, 00:41:03
  • Form 1099-OID 01:24:21
  • Form 1099-PATR 01:24:21
  • Form 8832 01:20:16
  • Form 945 01:14:48
  • Form 990 01:22:36
  • Form W-9 00:01:19, 00:04:54, 00:27:43, 00:45:55, 00:53:03, 01:03:14
  • Garnishment 00:40:44
  • IRC Section 3406(a) 00:08:28, 01:34:06
  • IRC Section 6041(a) 00:07:46
  • IRC Section 6045 00:37:22
  • IRC Section 6109(a)(2) 00:07:43,01:07:04, 01:12:49
  • Limited Liability Company (LLC) 00:56:51, 01:20:16
  • Resident Alien 01:15:15
  • Sole Proprietor 00:57:03, 01:03:33
  • Tax Exempt Organization Search Tool 00:04:24, 01:23:23
  • Tax Gap 00:01:52
  • TIN 00:03:43, 00:54:53, 01:11:11
  • TIN Match Program 00:04:24, 00:51:39, 01:02:59, 01:24:33
  • Transmitter Control Code (TCC) 00:15:45, 00:23:23
  • Vendor 00:34:53, 00:53:30, 01:26:07

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 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.

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.

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.

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 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 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-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-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 FromCooperatives, for each person to whom the cooperative has paidat least $10 in patronage dividends and other distributionsdescribed in section 6044(b), or from whom you withheld anyfederal income tax under the backup withholding rulesregardless 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-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/)

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

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.

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.

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

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ATATX Credit

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