2021 Forms 1099 MISC and 1099 NEC Reporting: Here’s What You Need To Know

For the 2021 tax year, the IRS will continue to use the relatively new information return – Form 1099-NEC – and enforce its filing requirement. Traditionally, businesses have used one form – Form 1099-MISC – to report payments made to nonemployees. Now, you may need to use both forms and follow their unique specifications. The renewed 1099-NEC form separates out nonemployee compensation from other sections of the 1099-MISC and imposes a filing deadline of January 31, 2022.

This virtual conference 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.

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.  

Learn the rules requiring W-9 documentation and 1099 reporting.  Learn how to establish the independent contractor relationship with the right documentation. Understand the rules and keep your company in compliance.  Ensure that your records will stand the scrutiny of an IRS 3rd Party Documentation and Reporting audit.  Avoid the onerous penalties for noncompliance and build the best defense against the 972-CG Notice of Proposed Penalty Letter.

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
• Starter Question: How can we best set up an independent contractor in our vendor payment system to ensure compliance with the IRS reporting rules?
• Protocols for setting up new vendors (ICs)
• When to require a Form W-9
• How to test the accuracy of the W-9 information with the IRS’s records – for free!
• Who and what you pay determines whether you must report (1099 reporting)
• Forms to use to document your independent contractor as reportable or non-reportable
• Required governmental reporting on ICs
• "B" notice procedures: When to issue and how to follow-up
• Using the IRS TIN verification system to avoid IRS notices
• Best practices for filing 1099s with the IRS – TIP: never file early!
• The government wants to remove the exemptions – what this means to you

Credits and Other information:

• Recommended CPE credit – 2.0
  
• Recommended field of study – Tax
• Session Prerequisites and preparation: None
• Session learning level: Basic
• Location: Virtual/Online
• Delivery method: Group Internet Based
• NASBA Sponsor: 146439
  
• IRS Course ID: PJGWS
• Attendance Requirement:  Yes
• Session Duration: 2 Hours
• Case Studies and Live Q&A session with speaker
  
• PowerPoint presentation for reference

Who Will Benefit:

• CPA's
  
• CFOs
• Tax Managers/Tax Professionals
• Tax Attorneys
• Accountants
• Tax Compliance Managers/Compliance Officers
• Bank Managers
  
• Information Reporting Officers
  
• Controllers
• Auditors
• IT Managers
• Risk Managers