2022 Form 1099 & W9 Annual Update
Author: Miles Hutchinson
| CPE Credit: |
2 hours for CPAs
2 hours Federal Tax Law Updates for EAs and OTRPs
2 hours Federal Tax Updates for CTEC |
For years the IRS has struggled with the independent contractor and tax collection. In assessing opportunities to close the tax gap (taxes due but not reported or paid), one of the greatest opportunities comes from expanding the information reporting on taxpayers by payors – the 1099. This time-consuming reporting obligation can be streamlined in a number of ways.
What are the rules regarding paying and IRS reporting on Independent Contractors? How do I avoid the IRS CP-2100 (B-Notices)? What if my vendor claims exemption; must I obtain a W-9 anyway? What are the best practices? How can I minimize risk of improper exemption claims by my vendors? Get the answers to these and related questions to reduce your risk of huge penalties from the IRS.
Publication Date: November 2022
Designed For
Bank Managers, Compliance Officers, Information Reporting Officers, Tax Managers, CFOs, Controllers, Accounting Managers, Auditors, IT Managers, Compliance Managers, and Risk Managers.
Topics Covered
- IRS Tax Revenue Issues
- Basic guidelines for W-9 Disclosures and 1099 Reporting
- Backup Withholding
- Review of Form 1099-Misc & 1099-NEC
- P-Cards & Form 1099-K
- Electronic Transmission to Payees
- Electronic Submission to IRS
- Avoiding Penalties
Learning Objectives
- Identify rules requiring W-9 documentation and 1099 reporting
- Recognize how to establish the independent contractor relationship with the right documentation
- Recognize the rules and keep your company in compliance
- Describe how to ensure your records will stand the scrutiny of an IRS 3rd Party Documentation and Reporting audit
- Identify how to avoid the onerous penalties for noncompliance and build the best defense against the 972-CG Notice of Proposed Penalty Letter
- Identify the 2022 fine for failure to file electronically when required
- Identify the penalty a requester may be subject to if a requester discloses or uses TINs in violation of federal law
- Identify the type of FDAP income that is applicable to 1099s
- Identify the IRC Section that covers interest earned on portfolio investments held in financial institutions
- Identify a state that has a state income tax
Level
Update
Instructional Method
Self-Study
NASBA Field of Study
Taxes (2 hours)
Program Prerequisites
Basic knowledge of 1099 and W-9.
Advance Preparation
None
