Speaker: Patrick A Haggerty
Date: December Wednesday 14th
Time:01:00 PM EST | 10:00 AM PST
Duration: 90 Minutes
Product Code: 700631
This webinar has been approved for 1.50 HR (General) recertification credit hours toward aPHR™, PHR®, PHRca®, SPHR®, GPHR®, PHRi™ and SPHRi™ recertification through HRCI.
“The use of this seal confirms that this activity has met HR Certification Institute’s® (HRCI®) criteria for recertification credit pre-approval.
“This program is valid for 1.5 PDCs for the SHRM-CPSM or SHRM-SCPSM.”
The regulatory landscape for Form 1099 compliance keeps shifting as Congress attempts to balance jobs growth with narrowing the tax gap and the IRS attempts to address fraud and identity theft issues involving information returns including 1099 Forms. Over the past decade changes were written into the law and regulations, some have been implemented, some were repealed, but all creating compliance challenges for businesses. To prevent fraud involving information returns and false refund claims, the filing deadlines for certain 1099-MISC Forms has been moved up. The IRS recognized the potential for an increase in the number of errors on filed 1099 Forms and has revised the de minimus error rules.
While the changes apply to most information returns, Form 1099-MISC presents a special set of reporting problems and deserves special discussion. It is used to report a number of types of payments with different requirements for each type of payment.
For all information returns, the issuer must obtain correct tax identification information from recipients and, if required for a particular payee, withhold income tax from payments to that payee. These two processes involve soliciting and obtaining Forms W-9 and W-8 from payees, not only to obtain the information, but to establish a reasonable cause penalty exception when things go wrong.
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.
Areas Covered in this Webinar
- Reminders & What’s New
- Information Returns
- A walk through Form 1099-MISC
- Correcting Errors
- SSN, TIN, EIN
- TIN Solicitation & “B” Notices
- TIN Verification
- Backup Withholding
- Penalties and Problems
- Know when to furnish and file information returns under the new requirements
- Understand the new 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
Pat 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 taxpayer’s 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, and information return reporting.