Form 1099 - MSIC Compliance and MISC Due Diligence

Why Should You Attend:

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.

Learning Objectives:

• Know when to furnish and file information returns under the new requirements
• Understand the de minimus money amount 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

Areas Covered in the Webinar:

• Overview of information returns – Resources for compliance
• Filing deadlines and affected returns
• De minimis exception for money errors
• Increases in penalties for non-compliance
• Form 1099-MISC - Reportable payments and payees
• Common 1099 errors – how to prevent them and how to correct them
• Taxpayer identification number basics: Which number to use
• Documentation that establishes reportable and non-reportable payees
• TIN Solicitation & “B” Notices – when to issue and how to follow-up
• Due diligence procedures avoid or mitigate penalties for missing or incorrect payee tax ID numbers
• TIN Verification and using the IRS TIN verification system
• Backup Withholding - What it is, When to start and when to stop, How to deposit and report
• 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

Patrick A Haggerty
Owner, Patrick A. Haggerty, Tax and Accounting Services

Patrick A. 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 tax payers 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.

Topic Background:

Form 1099-MISC presents a special set of reporting problems. It is used to report a number of types of payments with different requirements for each type of payment. In addition, the issuer must obtain correct tax identification information for a payee if a 1099 is required. Reporting entities must properly manage Form 1099-MISC requirements or face penalties for incorrect reporting.

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