Form 1099: Preparing for Significant New Reporting Demands

Meeting Challenges with Broader 1099-MISC Reporting, New 1099-K and Other Changes

Recording of a 110-minute CPE webinar with Q&A


Conducted on Thursday, December 16, 2010

Recorded event now available

or call 1-800-926-7926
Program Materials

This webinar will provide tax executives and advisors with a review of important changes in the federal Form 1099 program, including expansions in Form 1099-MISC filing, the new 1099-K, and the updated Form 1099-C.

Description

The 2010 federal health care reform bill contains provisions with a huge impact for corporate tax staffs handling Form 1099s. Starting in 2012, the Form 1099-MISC exclusion for reporting payments to corporations ends, and payments for goods above the $600 annual threshold must also be reported.

This means millions more 1099s will be filed and more tax may have to be withheld on contractor payments. Starting next year, many more online and other businesses will be issued reports on gross payments from credit and debit cards and from third-party e-payment processors via new Form 1099-K.

Reporting a lender's forgiveness of your company's debt on the updated Form 1099-C without paying additional tax also poses vexing compliance challenges. Heading into 2011, an update on Form 1099 developments, coupled with recommendations on adjusting corporate compliance programs, is critical.

Listen as our panel of experienced federal tax advisors helps prepare you for increased reporting demands and tougher compliance questions in the Form 1099 program.

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Outline

  1. 2010 federal health care reform law and Form 1099
    1. With few exceptions, elimination of exclusion of Form 1099-MISC on payments to corporations (as opposed to independent contractors)
    2. Annual payments for goods, as well as services, above $600 to be reported on Form 1099-MISC
    3. Expanded withholding on payments to vendors and contractors
    4. Effective starting in 2012
    5. Additional administrative rules needed from IRS
  2. New Form 1099-K
    1. Gross amounts of credit and gift card payments, and third-party processed transactions, to be reportable
    2. Part of IRS initiative to tax more “hidden” revenue
    3. Trigger: When merchant has 200 or more payment transactions per year totaling more than $20,000
    4. Payment numbers broken down month by month
  3. Updated Form 1099-C
    1. What is included in charged-off debts to be reported
    2. Exceptions
    3. Tax implications
  4. Strategies for revamping corporate overall 1099 compliance effort in response to recent developments

Benefits

The panel will address these key questions:

  • Form 1099-MISC: Which vendors and which purchases will trigger more reporting by your company? When will additional tax withholding be required? When will the IRS issue detailed rules and procedures? What should your company be doing now to prepare?
  • Form 1099-K: Will your business be covered? What card revenue will have to be reported? Which payment processors are involved?
  • Form 1099-C: What kinds of lenders and charged-off debts are reportable? What are the exclusions to cancelled debt in income? Can your company avoid paying extra tax?

Faculty

Michael Phillips
Michael Phillips

Partner
Calfee Halter & Griswold

He works with clients on tax, governance, fraud and abuse, and regulatory compliance and compensation matters. He also...  |  Read More

Cindy Grossman
Cindy Grossman

Giordani Swanger Ripp Phillips

Her practice encompasses a wide range of international, federal and state tax aspects of transactions, entity formation...  |  Read More

Scott Taylor
Scott Taylor
Tax Senior Manager
Eide Bailly

He has more than 11 years of public accounting experience and another eight years in private industry. He provides tax...  |  Read More

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