Form W-9 Compliance to Avoid Penalties: TIN Verification, B Notices and Backup Withholding!
Speaker: Patrick Haggerty
Speaker Designation: Owner, Tax and Consulting Services
Speaker: Patrick Haggerty
Speaker Designation: Owner, Tax and Consulting Services
Issuers of 1099 Forms can adopt best practices and procedures that streamline the year-end process and provide assurance that 1099s are correct, at least so far as vendor names and tax ID numbers (TINs) are concerned. While certain errors in reporting dollar amounts are considered "inconsequential" under de minimis error rules, errors in the payee’s name or TIN are never considered inconsequential and can result in penalties.
Best practices to avoid errors and penalties include TIN solicitation, TIN verification, a timely and appropriate response to IRS notices, B-Notices, and procedures to implement and discontinue backup withholding as required.
The webinar will discuss the solicitation process including solicitation, effective use of Form W-9, annual solicitations, B-notices, solicitations in response to IRS notices, and what to do when the vendor does not provide a TIN or provides an incorrect TIN.
It will cover how to register to use the IRS TIN verification service, how the system matches names and numbers and how this can help in preparing submissions to prevent false positive or negative responses from the system. It will cover how to submit TINs for verification and what to do when the system indicates a mismatch between the name and number of the vendor.
Procedures related to IRS notification of a name number mismatch or proposed penalties for incorrect information returns are also covered including procedures the payer must follow in issuing B-Notices to payees.
The session will discuss the establishment of procedures for the proper administration of backup withholding.
Year-end is a busy time for Accounts Payable. With annual increases in information return penalties, it is more important than ever to prepare information returns correctly and file them on time. Preparation well in advance of the filing season is critical.
The establishment and implementation of procedures that provide for TIN solicitation, TIN verification, response to IRS notices, and backup withholding are keys to efficient processing, avoiding errors or missing information, and establishing reasonable cause for penalty avoidance when errors occur.
This webinar discusses how to establish procedures and best practices, including name/Tax ID number verification, that avoid situations that can lead to penalties or, when such situations occur, establish reasonable cause that allows you to avoid the penalty.
This webinar will provide valuable insights to:
Pat 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 taxpayers 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, information returns, and accounting.
