Form 1099 Due Diligence for Withholding Income Tax | Product

Form 1099 tax compliance throughout the year requires withholding federal income tax from certain 1099 reportable payments in certain fact situations.  The withholding rate is 24% and that amount becomes a tax liability of the payer if this “backup withholding” was required but the payment slipped through without withholding.  Join this webinar for a thorough discussion of the regulatory requirements for obtaining the reportable name and TIN of vendors, the fact situations requiring 24% backup withholding, and how to mitigate risk of tax liability with due diligence procedures. 

Topics include:

• Required solicitation of taxpayer identification numbers
• The two fact situations in AP which require 24% backup withholding from payments 
• Time schedule for federal tax deposit of the withheld tax 
• Coding in the federal EFTPS deposit system 
• Reporting the withheld tax on the payee’s Form 1099
• Reporting the withheld tax on your organization’s annual Form 945 to the IRS 

Learning objectives:

• Correctly solicit the tax ID number of Form 1099 reportable payees 
• Correctly identify payees whose payments require 24% federal backup withholding 
• Prepare correct IRS Forms 1099 and 945 showing backup withheld tax amounts