Form 1099: Latest Forms, Rules and Reporting Regulations

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

The webinar will cover filing due dates, penalties for late-filed, and late furnished returns. It will also discuss the various ways to prevent and mitigate penalties including the safe harbor provisions for de minimis dollar amount errors and the important “reasonable cause” defense. It will also cover steps that can be taken to prevent penalties such as taxpayer identification number verification, backup withholding, handling B-notices, filing procedures, and correcting errors.

• Know when to furnish and file information returns under the new requirements
• Be aware of the changes in 2020 1099-MISC and the new Form 1099-NEC
• Understand the new de minimis error rules
• Identify reportable payments and payees. Know when 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 stop, and 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

The IRS is actively targeting enforcement measures on accounts payable operations. Penalties for non-compliance are now indexed and increase each year. It is more important than ever that 1099 Forms be prepared correctly, filed, and furnished timely, and that filers perform due diligence procedures to avoid or mitigate penalties. 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.

• Information Returns:2020 update to Form 1099-MISC; Resurrection of Form 1099-NEC
• Information Returns: What they are and using the Guide to Information Returns
• Forms 1099-MISC, 1099-NEC, and 1096: Identification of reportable payments and payees
• Common 1099 errors – how to prevent them and how to correct them
• Taxpayer identification number basics: Which number to use
• Form W-9: documentation that establishes reportable and non-reportable payees
• Due diligence procedures avoid or mitigate penalties
• How to handle missing or incorrect payee tax ID numbers?
• “B” notice procedures: When to issue and how to follow-up
• Using the IRS TIN verification system to avoid IRS notices
• Backup withholding requirements and procedures
• Penalties for late or incorrect 1099 Forms
• 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

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.