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Form 1099- MISC Compliance, Due Diligence, Reporting Requirements - Latest Updates

instructor
By: Patrick Haggerty
Recorded Session
Duration
90 Minutes
Training Level
Intermediate to Advanced

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Transcript

Recorded Session

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Webinar Details

This webinar will cover the latest updates for Form 1099-MISC, specific reporting requirements for various types of payments and payees, filing requirements, withholding requirements and reporting guidelines.

It will cover filing due dates including the accelerated due dates for 1099-MISC Forms with an entry in box 7, and the safe harbor requirements for de minimis dollar amount errors. It will cover penalty provisions due diligence procedures, and exceptions to penalties including reasonable cause, common errors, and correction of errors.

WHY SHOULD YOU ATTEND?

The changes in reporting requirements can be confusing and the IRS has recently made changes to reporting, error correction, and filing due date requirements. Accounts payable professionals, managers, and withholding agents need to be aware of the changes in order to avoid non-compliance and penalties. Penalties for non-compliance have recently been increased.

In order to stay compliant, practitioners must know which form to use to report specific transactions, when forms must be filed or furnished to recipients in order to be on-time, which information to include and how to make sure it is accurate, how and when to make corrections, how to avoid or mitigate errors, whether a particular payee is subject to backup withholding, or transaction reporting, and the due diligence procedures that shield an issuer from penalties even when the forms contain incorrect information.

AREA COVERED

  • Reminders & What’s New
  • Changes to filing deadlines and affected returns
  • De minimis exception for money errors 
  • Increases in penalties for non-compliance 
  • Information Returns
  • Overview of information returns
  • Resources for compliance 
  • A walk through Form 1099-MISC
  • Identification of reportable payments and payees
  • Correcting Errors
  • Common 1099 errors – how to prevent them and how to correct them
  • SSN, TIN, EIN
  • Taxpayer identification number basics: Which number to use
  • Documentation that established reportable and non-reportable payees
  • TIN Solicitation & “B” Notices 
  • Due diligence procedures avoid or mitigate penalties for missing or incorrect payee tax ID numbers
  • “B” notice procedures: When to issue and how to follow-up
  • TIN Verification
  • Using the IRS TIN verification system
  • Backup Withholding 
  • What it is 
  • When to start and when to stop 
  • How to deposit and report
  • Penalties and problems 
  • Procedures and policies that establish "reasonable cause" and avoid penalties

LEARNING OBJECTIVES

  • Know when to furnish and file information returns under the new requirements
  • Understand the de minimus error rules
  • Identify reportable payments and payees. Know when a 1099 is required
  • Be aware of common 1099 errors: Know how to avoid them and how to correct them
  • Understand backup withholding: What it is; When to start and when to stop; How to deposit and report. 
  • Know the due diligence procedures to avoid penalties for missing or incorrect payee tax ID numbers
  • Understand the procedures for "B" notices: When to issue and how to follow-up
  • Know when the payment card rules apply and how 1099 reporting is affected
  • Understand how to document independent contractor as reportable or non-reportable
  • Know the procedures and policies that establish "reasonable cause" and avoid penalties

WHO WILL BENEFIT?

  • CFOs and controllers
  • Accounts payable and accounting managers
  • Accounts payable processing professionals
  • Employers and Business owners
  • Purchasing managers and professionals 
  • Public accountants, CPAs and Enrolled Agents

The changes in reporting requirements can be confusing and the IRS has recently made changes to reporting, error correction, and filing due date requirements. Accounts payable professionals, managers, and withholding agents need to be aware of the changes in order to avoid non-compliance and penalties. Penalties for non-compliance have recently been increased.

In order to stay compliant, practitioners must know which form to use to report specific transactions, when forms must be filed or furnished to recipients in order to be on-time, which information to include and how to make sure it is accurate, how and when to make corrections, how to avoid or mitigate errors, whether a particular payee is subject to backup withholding, or transaction reporting, and the due diligence procedures that shield an issuer from penalties even when the forms contain incorrect information.

  • Reminders & What’s New
  • Changes to filing deadlines and affected returns
  • De minimis exception for money errors 
  • Increases in penalties for non-compliance 
  • Information Returns
  • Overview of information returns
  • Resources for compliance 
  • A walk through Form 1099-MISC
  • Identification of reportable payments and payees
  • Correcting Errors
  • Common 1099 errors – how to prevent them and how to correct them
  • SSN, TIN, EIN
  • Taxpayer identification number basics: Which number to use
  • Documentation that established reportable and non-reportable payees
  • TIN Solicitation & “B” Notices 
  • Due diligence procedures avoid or mitigate penalties for missing or incorrect payee tax ID numbers
  • “B” notice procedures: When to issue and how to follow-up
  • TIN Verification
  • Using the IRS TIN verification system
  • Backup Withholding 
  • What it is 
  • When to start and when to stop 
  • How to deposit and report
  • Penalties and problems 
  • Procedures and policies that establish "reasonable cause" and avoid penalties
  • Know when to furnish and file information returns under the new requirements
  • Understand the de minimus error rules
  • Identify reportable payments and payees. Know when a 1099 is required
  • Be aware of common 1099 errors: Know how to avoid them and how to correct them
  • Understand backup withholding: What it is; When to start and when to stop; How to deposit and report. 
  • Know the due diligence procedures to avoid penalties for missing or incorrect payee tax ID numbers
  • Understand the procedures for "B" notices: When to issue and how to follow-up
  • Know when the payment card rules apply and how 1099 reporting is affected
  • Understand how to document independent contractor as reportable or non-reportable
  • Know the procedures and policies that establish "reasonable cause" and avoid penalties
  • CFOs and controllers
  • Accounts payable and accounting managers
  • Accounts payable processing professionals
  • Employers and Business owners
  • Purchasing managers and professionals 
  • Public accountants, CPAs and Enrolled Agents

SPEAKER PROFILE

instructor

Patrick Haggerty is a tax practitioner, author, and educator. His work experience includes non-profit organization management, banking, manufacturing accounting, and tax practice. He began teaching accounting at the college level in 1988. He is licensed as an Enrolled Agent by the U. S. Treasury to represent taxpayers at all administrative levels of the IRS and is a Certified Management Accountant. He has written numerous articles and a monthly question and answer column for payroll publications. In addition, he regularly develops and presents webinars and presentations on a variety of topics including Payroll tax issues, FLSA compliance, information returns, and accounting.

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