Due Diligence Steps for Form 1099

Patrick Haggerty is Keynote Speaker at ComplianceKey. He 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 a........


Issuers of 1099 Forms can adopt best practices and procedures that streamline the year end process and provide assurance that 1099s are correct, at least so far as vendor names and TINs are concerned. While certain errors in reporting dollar amounts are considered "inconsequential" under new de minimis error rules, errors in the payee name or TIN are never considered inconsequential and can result in penalties.

Best practices to avoid errors and penalties include TIN solicitation, TIN verification, timely and appropriate response to IRS notices including issuing and follow up on B-Notices to payees, and procedures to implement and discontinue backup withholding as required.

The webinar will discuss the solicitation process including solicitation using and analyzing Form W-9, annual solicitations, B-notices and solicitations in response to IRS notices, and what to do when the vendor does not provide a TIN or provides an incorrect TIN.

It will cover how to register to use the IRS TIN verification service, how the system matches names and numbers and how this can help in preparing submissions to prevent false positive or negative responses from the system. It will cover how to submit TINs for verification and what to do when the system indicates a mismatch between the name and number of the vendor.

Procedures related to IRS notification of a name number mismatch or propose penalties for incorrect information returns are also covered including procedures the payer must follow in issuing B-Notices to payees.

And, the session will discuss establishment of procedures for proper administration of backup withholding. 

Why should you attend this webinar?

Year end is a busy time for Accounts Payable. With the acceleration of the due date for certain 1099 Forms and the increased penalties, it is more important than ever to prepare information returns correctly and file them on time.

Establishment and implementation of procedures providing for TIN solicitation, TIN verification, response to IRS notices and backup withholding are keys to efficient processing, avoiding errors or missing information, and establishing reasonable cause for penalty avoidance when errors occur.

This webinar discusses how to establish procedures and best practices, including name/TIN verification, that avoid situations that can lead to penalties or, when such situations occur, establish the reasonable cause defence that allows you to avoid the penalty.

Areas Covered in the Session:

  • The IRS matching process
How the IRS matches the names and tax ID numbers on information returns such as Form 1099 to determine if they are correct. It also uses this process to notify issuers of incorrect names and numbers and to propose and assess penalties for errors to issuers. Understanding the process and registering for and using the IRS TIN matching service is a best practice for preventing mismatches and penalties and to establish reasonable cause when mismatches occur.
  • Penalties
Penalties for errors on information returns, including 1099 Forms have increased for 2016 returns filed in 2017 and later years.
  • Establishing reasonable cause
When errors do occur, certain exceptions are allowed to the assessment of penalties including reasonable cause. To establish reasonable cause, issuers must demonstrate due diligence and circumstances beyond the issuer?s control.Using Form W-9 to timely solicit information from a payee regarding the name and ID number of the payee, whether the payee is subject to or exempt from backup withholding, and the payee?s entity type is a key first step in establishing due diligence. Additional follow up may be required when a payee fails to provide a TIN, when TIN verification returns a mismatch, or when the IRS notifies the issuer of an incorrect TIN.
  • Solicitations
Solicitations are the key to establishing due diligence and reasonable cause. The webinar will discuss how and when to make solicitations and what to do if the payee responds or fails to respond.
  • TIN verification
The discussion will cover the registration process for the IRS TIN matching system, how to use the system to verify the matching of vendor names and TINs are provided by the vendors, and the procedures to follow in a mismatch is returned.
  • IRS Notices
What constitutes notice from the IRS that a vendor TIN is incorrect and what step should be taken after receiving a notice.
  • Backup withholding
Backup withholding is defined. When to begin backup withholding, when to stop backup withholding, how to deposit it and how to report it.

Who can Benefit:

Webinar Id: CIFPAH005

Training Options:

Duration: 90 mins

 Stop, pause, and rewind: learn at your own place.

No reviews yet!!
 Recorded: [Six month unlimited access]

 $167 (Single Attendee)  $599 (Unlimited Attendee)

Refund Policy
Upcoming Webinar of Patrick A Haggerty
Form 1099-MISC 1099-NEC Compli....
Presenter: Patrick A Haggerty
When: 27-Sep-2021 | 10:00 AM PT |01:00 PM ET
Price: $179
Payroll Tax Forms | Payroll Le....
Presenter: Patrick A Haggerty
When: 12-Oct-2021 | 10:00 AM PT | 01:00 PM ET
Price: $179

More Webinar

Past Webinar of Patrick A Haggerty
IRS Form 1099 Reporting Update....
Presenter: Patrick A Haggerty
View it anytime
Price: $193
Form W-4 Update: Withholding C....
Presenter: Patrick A Haggerty
View it anytime
Price: $241

More Webinar

Pay Pal Logo   PayPal Verified Logo   GoDaddy Certified
Copyright © 2020 Compliance Key . All Rights Reserved. Back to Top