
Best Practices for 1099 Compliance Including the New 1099-NEC and Updated 1099-MISC
Description
In this course, we take a comprehensive walk through the best practices for complying with IRS Forms W-9, 1099-MISC and 1099-NEC reporting requirements for the calendar year 2020. This will include an in-depth look at the brand-new Form 1099-NEC and the updated Form 1099-MISC. Learn how to effectively manage your IRS reporting obligations and reduce your risk of penalties.
Major Subjects Covered
- Definition of IRS information reporting
- IRS classification of employee vs independent contractors
- Importance of receiving W-9s that are correct and complete
- Limited liability company tax classifications
- Single-member LLCs and related W-9 form requirements
- TIN Matching process
- Backup withholding and annual solicitation requirements
- Payments not reportable on a 1099 form
- Reporting payments made to corporations
- The new Form 1099-NEC and revised 1099-MISC
- State reporting and the Combined Federal/State Reporting Program
- The consent needed to send 1099 forms electronically to your vendors
- The 1099 correction process
- “B” notice obligations
- Form 1099 due dates for the calendar year 2020
Learning Objectives
Upon completing this session, you should be able to:
- Learn how the IRS classifies employees vs. independent contractors
- Learn the importance of correct and complete W-9 forms
- Illustrate the value of IRS TIN matching and how to implement in your company
- Understand 2020 IRS backup withholding requirements, penalties, due dates and “B” notice rules
- Identify payments that are reportable on the newly updated Form 1099-MISC
- Discuss the brand-new Form 1099-NEC
Recommended CPE Credit
2 hours of Financial Education
Instructional Delivery Method: QAS on-demand learning, including review and final exam questions. To earn credit, participants must pass the final exam with a score of 70% or better within one year of registering for this course. Participants may attempt take the final exam up to 10 times.