TIN Verification, B-Notices, and Backup Withholding: Best Practices to Reduce IRS Notices and Avoid Penalties -By AtoZ Compliance

Key Take Away :
How to establish and use procedures that verify vendor TIN and name matching to streamline year end processing and minimize errors when issuing and filing vendor 1099 Forms.

Overview :
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 TINs are concerned. While certain errors in reporting dollar amounts are considered “inconsequential” under new de minimis error rules, errors in the payee name or TIN are never considered inconsequential and can result in penalties.

Best practices to avoid errors and penalties include TIN solicitation, TIN verification, timely and appropriate response to IRS notices including issuing and follow up on B-Notices to payees, and procedures to implement and discontinue backup withholding as required.

The webinar will discuss the solicitation process including solicitation using and analyzing Form W-9, annual solicitations, B-notices and solicitations in response to IRS notices, and what to do when the vendor does not provide a TIN or provides an incorrect TIN.

Why Should You Attend :

Year end is a busy time for Accounts Payable. With the acceleration of the due date for certain 1099 Forms and the increased penalties, it is more important than ever to prepare information returns correctly and file them on time.

Establishment and implementation of procedures providing 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.

Areas Covered In This Webinar :

This webinar will discuss

The IRS matching process

How the IRS matches the names and tax ID numbers on information returns such as Form 1099 to determine if they are correct. It also uses this process to notify issuers of incorrect names and numbers and to propose and assess penalties for errors to issuers.

Understanding the process and registering for and using the IRS TIN verification service is a best practice for preventing mismatches and penalties and to establish reasonable cause when mismatches occur.

Penalties

Penalties for errors on information returns, including 1099 Forms have increased for 2016 returns filed in 2017.

Establishing reasonable cause

When errors do occur, certain exceptions are allowed to the assessment of penalties including reasonable cause. To establish reasonable cause, issuers must demonstrate due diligence and circumstances beyond the issuer’s control. Using Form W-9 to timely solicit information from a payee regarding the name and ID number of the payee, whether the payee is subject to or exempt from backup withholding, and the payee’s entity type is a key first step in establishing due diligence. Additional follow up may be required when a payee fails to provide a TIN, when TIN verification returns a mismatch, or when the IRS notifies the issuer of an incorrect TIN.

Learning Objectives :

Know how to register individuals to use the IRS TIN verification system and set up a company account.
Know how to submit names and TINS for verification.
Know the steps to properly follow up on a mismatch indicated by the TIN verification system.
Understand the importance of TIN solicitation using Form W-9 and follow up solicitations where necessary in establishing due diligence and reasonable cause for purposes of penalty avoidance.
Know how and when to issue B-notices to vendors and what to do when the payee responds or fails to respond.
Know what to do when a payee fails to provide a TIN.
Understand backup withholding, when to start it, when to stop it, and how to deposit and report it.

Who Will Benefit:

CFOs and controllers
Accounts payable and accounting managers
Accounts payable processing professionals
Employers and Business owners
Purchasing managers and professionals
Public accountants, CPAs and Enrolled Agents
For more information, please visit : https://www.atozcompliance.com/trainings-webinar/banking-financial-services/accounting-taxation/irs-and-fatca-compliance-program-practices-to-reduce-irs-penalties/patrick-a-haggerty/300198?utm_source=ref&utm_medium=07Mar
Email: support@atozcompliance.com
Toll Free: +1- 844-414-1400
Tel: +1-516-900-5509

Level:
Intermediate

Speakers Profile :

Patrick A Haggerty
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, and information return reporting.

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