Form 1099 -MISC and 1099-NEC Due Diligence

This webinar will cover the reporting requirements for Forms 1099-MISC and 1099-NEC. It will also cover changes to the Forms for 2022 and expected changes to the filing requirements including new e-filing requirements that will affect most filers. It will cover specific reporting requirements for various types of payments and payees, filing requirements, withholding requirements and reporting guidelines, and best practices for compliance assurance and penalty avoidance.

This webinar will cover the latest updates for Form 1099-MISC and 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, various ways to prevent and mitigate penalties including the safe harbor provisions for de minimis dollar amount errors and the important “reasonable cause” defense, steps that can be taken now to prevent penalties such as taxpayer identification number verification, backup withholding, handling B-notices, filing procedures and correcting errors.

• Information Returns: 2022 updates to Forms 1099-MISC and 1099-NEC
• Reporting and filing requirements for 2021 returns filed in 2022
• 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
• Penalties for late or incorrect 1099 Forms
• 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.
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.
The IRS recently released proposed regulations regarding the reduction of the e-filing thresholds for information returns. This session will provide the latest information available regarding the proposed regs and what to do to prepare for compliance under final regulations.

After this webinar you will:

• Be prepared for filing Form 1099 NEC and Form 1099-MISC
• Be prepared for anticipated changes to electronic filing for 2022 Forms in 2023
• Know the due dates for furnishing and filing information returns
• Identify reportable payments and payees. Know when the 1099 is required
• Be aware of common 1099 errors: Know how to avoid them and how to correct them
• Understand how Form W-9 can assist in determining when 1099 is required.
• Be aware of backup withholding requirements and “B” notices
• Be aware of best practices such as TIN solicitation and verification that can avoid or mitigate penalties for missing or incorrect vendor Tax ID numbers.
• Know when the payment card rules apply and how 1099 reporting is affected

• 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. 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.