9272022 2.00

Author: Miles Hutchinson

CPE Credit:  2 hours for CPAs
2 hours Federal Tax Law Updates for EAs and OTRPs
2 hours Federal Tax Updates for CTEC

For years the IRS has struggled with the independent contractor and tax collection. In assessing opportunities to close the tax gap (taxes due but not reported or paid), one of the greatest opportunities comes from expanding the information reporting on taxpayers by payors – the 1099. This time-consuming reporting obligation can be streamlined in a number of ways.

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.

Publication Date: November 2021

Designed For
Bank Managers, Compliance Officers, Information Reporting Officers, Tax Managers, CFOs, Controllers, Accounting Managers, Auditors, IT Managers, Compliance Managers, and Risk Managers.

Topics Covered

  • IRS Tax Revenue Issues
  • Basic guidelines for W-9 Disclosures and 1099 Reporting
  • Backup Withholding
  • Review of Form 1099-Misc
  • P-Cards
  • Electronic Transmission to Payees
  • Electronic Submission to IRS
  • Avoiding Penalties


Learning Objectives

  • Identify rules requiring W-9 documentation and 1099 reporting
  • Recognize how to establish the independent contractor relationship with the right documentation
  • Recognize the rules and keep your company in compliance
  • Describe how to ensure your records will stand the scrutiny of an IRS 3rd Party Documentation and Reporting audit
  • Identify how to avoid the onerous penalties for noncompliance and build the best defense against the 972-CG Notice of Proposed Penalty Letter
  • Recognize the maximum penalty for failure to timely file Forms 1099 with the IRS where the returns are filed more than 30 days after the due date, but prior to August 1st, for a small employe
  • Desribe correct statements regarding the payees who are U.S. independent contractors
  • Identify which payee is not exempt from backup withholding
  • Recognize which type of FDAP income are applicable to Form 1099s
  • Identify which box of the Form 1099-MISC are IRC 409A deferrals reported
  • Identify which state has independent contractor reporting requirements



Instructional Method

NASBA Field of Study
Taxes (2 hours)

Program Prerequisites
Basic knowledge of 1099 and W-9.

Advance Preparation

Additional Course Details

  • Filed of Study: Taxation
  • Publisher: Wolters Kluwer
  • Course Level: Basic
  • Pre-Requisites: None
  • Enrolled Agent: No
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