Our 2019 editions are NOW AVAILABLE!
When it comes to 1099 and 1042-S compliance, we wrote the book!
These tools serve as indispensable resources that our members turn to as they navigate the complexities that go along with maintaining compliance in an ever-changing regulatory environment. Each guide contains comprehensive information concerning IRS rules and regulations, what is reportable, when and how to file to the IRS, compliance checklists, and a year-end review that will save you time and help you avoid penalties.
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2019 Master Guide to Form 1099
The 2019 Master Guide to Form 1099 Compliance provides detailed instruction surrounding the reporting rules, regulation updates and changes, and provides indexed information for the very wide range of 1099 reporting scenarios that you could encounter in Accounts Payable.
Sections clarify the use of Form W-9; payments reportable on Form 1099-MISC; payee types that are exempt from being reported; backup income tax withholding requirements; handling IRS “B” notices and proposed penalty notices; settlement and attorney payments; filing to the IRS; furnishing recipient copies; and more. The wealth of supporting documentation will help inform your actions and ensure that you are reporting accurately, on-time, and stay in compliance.
Highlights and important updates from the 2019 edition include:
- New Form 1099-NEC for nonemployee services compensation payments made in 2020
- Special filing procedure required for 2019 box 7 1099-MISC returns filed after January 31
- New IRS compliance campaign targeting failures to backup withhold tax from payments when EINs and SSNs of 1099 reportable payees are missing or incorrect
- Changes in tax Code and Regulations will require more efiling of 1099s to the IRS
- Penalties increased for incorrect and late-filed 1099s
2019 Master Guide to Form 1042-S
The 2019 Master Guide to Form 1042-S Compliance provides detailed instruction on new Regulations, Forms and Instructions issued in 2019; updates affecting this year’s reporting; an in-depth look at current rules (NFFEs, FATCA, ECI, and more); the W-8 form series and Form 8233 used to certify foreign status; when default 30% tax withholding applies; how income tax treaty benefits can be claimed to reduce tax withholding; and when and how to file Forms 1042-S and 1042. The book includes a full glossary, a compliance and year-end checklist, as well an appendix of forms, instructions and IRS guidance documents.
Payers must be able to identify their payees as U.S. or non-U.S. individuals or entities from initial contact with them, as well as determine whether payments made to them throughout the course of the year require withholding of U.S. tax and reporting to the IRS. Payments to foreign individuals and foreign entities are subject to regulations and withholding requirements entirely different from those which govern Form 1099 reporting.
Payers must be able to identify their payees as U.S. or non-U.S. individuals or entities from initial contact with them, as well as determine whether payments made to them throughout the course of the year require withholding of U.S. tax and reporting to the IRS.
Highlights and important updates in the 2019 edition include:
- IRS changes to the 1042-S form for reporting payments made in 2019
- New IRS enforcement campaigns to find payers that fail to withhold 1042 tax, fail to file all
- 1042-S and 1042 forms required, and improperly grant tax treaty benefits to foreign payees
- Regulatory changes which affect validity of some elements of Forms W-8
- IRS guidance on challenges including cloud transactions, digital content, virtual currencies
IOFM’s Master Guides to 1099 and 1042-S Compliance are produced in partnership with COKALA Tax Information Reporting Solutions, LLC. COKALA’s team is part of the team that helps answer our Members' toughest IRS questions through our Ask the Expert feature.