1099 Reporting Payments for Middlemen, Agents, Liens, and Garnishments

Author: Steven D. Mercatante

With constant revisions to Forms 1099 and 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 tough 1099 payee and payment reporting situations like those involving middlemen, agents, liens, and garnishments.

In this course, industry expert and corporate tax attorney Steven D. Mercatante Esq. takes a look at 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 also identifies key issues and best-practices for addressing them.

Publication Date: October 2022

Topics Covered

• Which 1099 to use and watch out for key trouble spots on the most commonly filed Forms 1099
• W-9 document validation best practices with a focus on situations when multiple names are provided, handling undocumented payees, exempt payees, and best practices for handling reporting when multiple parties are involved in the transaction
• Target categories of payees and payments that can lead to 1099 reporting when the reporting does not necessarily follow the check
• Receive tips on recent 1099 changes
• Tricky situations involving identification of the beneficial owner of the income for 1099 reporting purposes
• Determine when a garnishment or lien payment made to a court or an attorney is reportable and to whom

Learning Objectives

• Recognize which 1099 to use and watch out for key trouble spots on the most commonly filed Forms 1099
• Identify difficult payment situations involving multiple parties and struggle to identify to whom you should report the payment
• Recognize if your 1099 validation and reporting procedures are not set up properly to help in identifying the beneficial owner of the income and to whom you should report
• Identify the section of the law that authorizes you to backup withhold and report accordingly on Form 1099 if the payee's name and TIN is not provided
• Identify when you are required to use the Form W-9
• Identify the name that should be on the the Form 1099-MISC if the vendor is a "disregarded entity"
• Identify which of your organization's employee's must be the first to sign up for the TIN Match Program under IRS rules

Level
Basic

Instructional Method
Self-Study

NASBA Field of Study
Taxes (2 hours)

Program Prerequisites
None

Advance Preparation
None