Form 1099 Filing Update

Author: Steven D. Mercatante

CPE Credit:  2 hours for CPAs
2 hours Federal Tax Law Updates for EAs and OTRPs
2 hours Federal Tax Updates for CTEC

With constant revisions to Form 1099 and the related rule changes, it is crucial to remain up-to- date with the current information reporting laws to avoid those dreaded penalties and interest not to mention the time consumed to make corrections. Whether you are new or seeking an update this course will provide CPA’s, Accounts Payable, Payroll, and Tax with plain English guidance to help minimize 1099 filing mistakes while breaking down the toughest 1099 payee and payment reporting situations.

In this course, industry expert and corporate tax attorney Steven D. Mercatante Esq. takes a look some of the more common problems experienced by CPA’s, accounts payable, and tax departments related to documenting, validating, and reporting payee information on IRS Forms 1099. He identifies key issues and best-practices for addressing them.

In this course you will learn what can you do NOW to prepare Form 1099s and avoid notices of error from the IRS via developing best practices and exercising due diligence collecting and validating data to be included when you file. At the completion of this course you will have the tools necessary to evaluate the W-9 and prepare Forms 1099 with all the boxes properly completed.

Publication Date: December 2020

Topics Covered

  • What's New
  • The tax gap
  • Specific COVID Changes to 1099/1042-S Due Diligence Requirements in 2020 — not so much
  • Other changes to 1099/1042-S Due Diligence Requirements — you bet there are.
  • The Law: The Internal Revenue Code (IRC) requires that payers of certain types of payments issue information returns (i.e. Forms 1099-MISC)
  • IRC Sec. 6041(a) provides that persons engaged in a trade or business must report certain payments on an information return (i.e. Form 1099-MISC)
  • IRC Sec. 6109(a)(2) requires that a payee provide a TIN to the payer when the payment will be reportable on an information return (i.e. Form 1099-MISC)
  • IRC Sec. 3406(a) requires that, under certain circumstances, including failure of payee to provide a TIN, the payer must perform backup withholding
  • W-9 Due Diligence
  • When to Get an Updated Form W-9
  • Must obtain Form W-9
  • There are no other requirements to obtain new Forms W-9
  • Not required to request new W-9 if mismatch in TIN Matching Program
  • Payee W-9 Solicitation/validation Tips
  • Mail solicitations
  • Electronic solicitations
  • Watch out for EIN red flags!

Learning Objectives

  • Determine which 1099 to use and watch out for key trouble spots on the most commonly filed Forms 1099 — including a detailed look at the Forms 1099-NEC, 1099-MISC, 1099-R, 1099-INT, 1099-K, 1099-S, and Form 945
  • Identify the Form 1099-MISC's trickiest boxes in relation to the new 1099-NEC: rent, leases, prizes and awards, hotel payments, when to report freight payments, recognize which boxes and which form to use for reporting attorney and settlement payments, decode what "damages" payments mean for AP purposes
  • Differentiate between box 6 1099-MISC and box one 1099-NEC medical service provider payments, discover when the reporting does not always follow the payment, determine which boxes and forms to report non-qualified deferred compensation
  • Identify W-9 document validation best practices with a focus on situations when multiple names are provided, handling undocumented payees, exempt organization payees, and IRS TIN Match Program best practices
  • Identify categories of payees and payments that are both reportable and not reportable, plus identify service payments that also require the reporting of a related good
  • Discover recent 1099 changes plus get our analysis of the new Form 1099-NEC and what it means for 1099-MISC reporting
  • Recognize how to identify the reportable payee when you pay sole proprietors, LLCs, payee's merged or bought by another, S-Corps, agents, or middlemen
  • Identify valuable tips for E-Filing and for using the Combined Federal/State Filing Program
  • Recognize how to receive backup withholding guidance designed to make your job easier, including a detailed discussion of the Form 1099-MISC Box 4 and Form 1099-NEC Box 4 versus usage of Form 945


Instructional Method

NASBA Field of Study
Taxes (2 hours)

Program Prerequisites
A basic understanding of Form 1099.

Advance Preparation

Registration Options
Regular Fee $59.00

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