Issuers of 1099 Forms should adopt best practices and procedures that streamline the filing and post-filing process. These should include measures providing 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 de minimis error rules, errors in the payee name or TIN are never considered inconsequential. In fact, they can easily result in penalties.

This program will accordingly discuss best practices to avoid errors and penalties. Methodologies explored include those involving TIN solicitation, TIN verification, timely and appropriate response to IRS notices (including issuance of and follow-up regarding B-Notice letters sent to payees), and procedures to implement and discontinue backup withholding as required.

The webinar will also 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.

It will further 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 addressed - including procedures the payer must follow in issuing B-Notices to payees.