Form 1099 Latest Developments

Learning Objectives

• To identify the types of 1099s and how they are used
• To explore key boxes on the Form 1099-MISC
• To discuss form 1099-NEC 
• To identify who is a contractor
• To determine the IRS 3-factor test relating to contractor vs. employee
• To identify other agencies that could audit a client
• To determine the appropriate relief options for a client in an audit
• To describe the Form SS-8
• To describe the Form 8919
• To review form W-9
• To discuss about the 80-year-old question of whether rental activity is a business
• To identity the key factors in Revenue Procedure 2019-38
• To discuss about loans from shareholders and properly reporting interest payments
• To identify key concepts relating to foreign contractors
• To recognize key boxes on the Form 1099-R
• To identify how to fix errors relating to IRAs, and how to report on tax returns

Course Description

As a tax practitioner, you’re most probably aware of how much the IRS likes 1099 forms.

These are the forms that let taxpayers accurately report their income generated from sources other than salary or job wages. When someone receives a 1099 form, he/she mustn’t ignore it because the IRS gets a copy of the same too.

And this is the reason why pursuing 1099 CPE makes you a valuable asset to your clients.

Keeping up with the changes in tax regulation from year to year can be challenging only if you are not aware of it.

Although taxpayers may not like receiving tax documents, such as 1099s, and businesses probably like issuing them even less, 1099s are important since they keep track of income that isn't recorded in a person's wages or salary.

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. Form 1099 MISC Reporting can be confusing. Failing to meet all the 1099 filing requirements can be costly.

With the new updates to Forms 1099-MISC and 1099-NEC, the 1099 filing season has added a whole new layer of complexities. Whether you are new to the 1099 filing process or seeking an update, this CPE session will help minimize 1099 filing mistakes while breaking down the toughest 1099 payee and reporting situations as part of an in-depth box-by-box review of the recently revised Form 1099-MISC and new Form 1099-NEC.

Form 1099 Non-Employee Compensation (NEC) is a revised and updated version of a previously discontinued form that allows companies to report compensation paid to nonemployees, contractors, vendors and consultants alike.  In this specialized CPE session, you’ll learn why the form was resurrected, as well as other important details.

Whether you’re operating a business domestically or internationally, in order to succeed, you need quality team members to get the job done. Paying those workers as independent contractors, however, can be risky if your company is operating in foreign markets. There are many factors to consider when paying foreign contractors if you want to stay in compliance, minimize operational costs and keep valued contractors happy on the job.

While there are many types of 1099 forms, they all serve the same purpose; they are used by taxpayers to provide information to the Internal Revenue Service (IRS).

Form 1099-R is a common form but most people who handle the form do not understand the ins and outs of it. Basic 1099-R forms are straightforward but it doesn't take much for complications to set in.

For example, when is a required minimum distribution required? What if the participant wants to roll their RMD into a charity? What if the account has after-tax basis? What about Roth conversions involving after-tax basis and partial withdrawals from a traditional IRA? What are the contribution limits and what happens if someone exceeds those limits?

This Online CPE Webinar will answer all of these questions and more. The IRS can assess penalties against issuers of Form 1099-R for failure to comply with the rules. A mistake on the form can also cost a taxpayer money. Therefore, it is critical to know how to handle this form and deal with all of the situations that can arise.

Major topics covered in this online CPE/CE Tax webinar: 

• Information Returns
• Filing requirements and the FIRE system
• A walk-through Form 1099-MISC
• Correcting Errors
• SSN, TIN, EIN: Tax ID numbers and Form W-9
• TIN Solicitation & "B" Notices
• TIN Verification
• Backup Withholding
• Penalties and Problems
• How to prepare the form
• Differences from and changes to Form 1099-MISC
• Avoiding mistakes and fines
• Publication 1220 and e-filing
• Rental Activities
• Rental real estate enterprise
• Loans and interest payments
• Payments to foreign contractors
• What Is Form 1099-R and Who Must File
• Dealing With Withdrawals
• Other Situations

Overview

• What is a 1099?

  2 mins
• Legal payments

  28 mins
• No 1099, No deduction?

  58 mins
• TIN verification

  91 mins
• Can a worker be both?

  122 mins
• Qualifying for section 3509 relief

  147 mins
• Backup withholding

  176 mins
• Charitable transfer of RMD

  221 mins
• Traditional IRA problems

  242 mins
• The 1099-R and Corrective distributions

  275 mins