Form W-9 Compliance to Avoid Penalties: TIN Verification, B Notices and Backup Withholding

Form W-9 compliance is the first step toward accurate information returns. The form tells you whether a payee needs an information return and gives you the correct name and taxpayer identification number (TIN) to report.

This 90-minute webinar shows how to set up procedures for TIN solicitation, TIN verification, responding to IRS notices and backup withholding. Done well, these steps make processing more efficient, prevent errors and missing information, and support a reasonable cause defense when mistakes do happen.

You'll also cover B notice procedures for IRS CP2100 and CP2100A notices, de minimis error rules, exemptions from backup withholding and FATCA reporting, and the penalties for late or incorrect Forms 1099.

• Know when Form W-9 must be signed and how it documents vendor reporting status
• Identify exemptions from backup withholding and FATCA reporting
• Apply the de minimis error rules and avoid common information return errors
• Explain when to start and stop backup withholding, and how to deposit and report it
• Follow due diligence procedures for missing or incorrect payee TINs
• Issue and follow up on B notices correctly
• Prepare for changes to electronic filing requirements

• TIN basics: which number to use
• Form W-9 as documentation of reportable and non-reportable payees
• Due diligence procedures that avoid or reduce penalties
• TIN verification as a best practice
• Handling missing or incorrect payee TINs
• B notice procedures: responding to IRS CP2100 and CP2100A notices
• Penalties for late or incorrect Forms 1099
• Policies and procedures that establish reasonable cause
• Exceptions that eliminate or reduce penalties
• Changes to e-filing thresholds for information returns

Year-end is busy for accounts payable, and information return penalties rise every year, so preparing well ahead of filing season matters. The session also addresses IRS changes to the e-filing thresholds for information returns and how to prepare.

It suits CFOs and controllers, accounts payable and accounting staff, purchasing professionals, employers and business owners, and public accountants, CPAs and enrolled agents.

• 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

Patrick 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.