Form 1099 Due Diligence for Withholding Income Tax


Thursday, April 20, 2023 | 2:00PM - 3:45PM Eastern Time

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

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Featured speaker:

Marianne Couch, JD - Principal, Cokala Tax Information Reporting Solutions, LLC

Marianne Couch, JD, a Principal in the Cokala Tax Group, is an advisor on U.S. federal information reporting compliance. She is a frequent lecturer at major tax conferences and the author of numerous published articles. She served for many years as Research Director of an information reporting and withholding consultancy where she chaired special training and advisory services provided to large organizations and academic and nonprofit institutions. She was previously a member of the IRS Information Reporting Program Advisory Committee (IRPAC), where she served as Chair of the IRPAC Subcommittee on Small Business and Self-Employed (SBSE) tax issues. In this capacity, she testified annually before the IRS Commissioner on issues of concern to the information reporting community. Marianne has previously worked as a litigator for a large Michigan law firm, where she represented individuals and large clients in many types of civil actions, and formerly served as a Research Attorney for the Michigan Court of Appeals.

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Accessibility Information:

IOFM is committed to accessibility. Disability-related accommodation requests for the live event (such as providing live captioning) should be sent to [email protected] by close of business the day before the live webinar. A captioned recording of this webinar can be made available upon request to [email protected].

Cancellation policy:

To cancel your registration for this event, simply contact IOFM customer service at [email protected] (or call 207-842-5557) no later than 24 hours prior to the scheduled start of the event. You can choose to access the full recorded event, or, your credit may be applied toward the purchase of any IOFM product or interactive event. If for any reason you are not completely satisfied with this program, we will provide a full refund — no questions asked!

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