DESCRIPTION
New filing date- File Copy A of Form 1099-nec with the IRS on or before January 31, 2022 using either paper or electronic filing procedures.
This webinar will cover the 2021 changes to Forms 1099-MISC Form 1099-NEC. It will cover specific reporting requirements for various types of payments and payees, filing requirements, withholding requirements and reporting guidelines.
The webinar will cover filing due dates, penalties for late filed and late furnished returns. It will also discuss the various ways to prevent and mitigate penalties including the safe harbor provisions for de minimis dollar amount errors and the important “reasonable cause” defence. It will also cover steps that can be taken to prevent penalties such as taxpayer identification number verification, backup withholding, handling B-notices, filing procedures and correcting errors.
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:
- Information Returns: 2021 updates to Form 1099-MISC and Form 1099-NEC
- 1099, W-2 and ACA Filing Deadlines to IRS and SSA
- Information Returns: What they are and using the Guide to Information Returns
- Forms 1099-MISC, 1099-NEC and 1096: Identification of reportable payments and payees
- Common 1099 errors - how to prevent them and how to correct them
- Taxpayer identification number basics: Which number to use
- Form W-9: documentation that establishes reportable and non-reportable payees
- Due diligence procedures avoid or mitigate penalties
- How to handle missing or incorrect payee tax ID numbers
- "B" notice procedures: When to issue and how to follow-up
- Using the IRS TIN verification system to avoid IRS notices
- Backup withholding requirements and procedures
- Penalties for late or incorrect 1099 Forms
- Procedures and policies that establish "reasonable cause" and avoid penalties
Who Should Attend?
- CFOs and controllers
- CPAs and Enrolled Agents
- Accounts payable and accounting managers
- Tax Attorneys and Other Tax Professionals
