Overview
This webinar will provide a detailed review of the reporting requirements for Forms 1099-MISC and 1099-NEC, with an emphasis on proper preparation, filing procedures, and compliance. The session will cover key updates for 2026, including OBBBA-related reporting changes, electronic filing requirements, and the available filing methods, including the IRS Information Returns Intake System (IRIS), IRIS Application-to-Application (A2A), third-party filing services, and paper filing.
The program will examine reporting requirements for different types of payments and payees, applicable filing and withholding obligations, and the guidelines for preparing accurate information returns. Participants will also review filing and recipient furnishing deadlines, penalties for late or incorrect filings, applicable exceptions, and practical approaches to preventing or mitigating penalties, including establishing reasonable cause for penalty abatement.
Why Should You Attend
The IRS continues to strengthen its enforcement capabilities through increased technology and staffing, with greater attention being given to information reporting compliance as part of its efforts to reduce the tax gap. Penalties for noncompliance are adjusted annually for inflation, making it increasingly important for businesses and tax professionals to understand their reporting obligations and ensure Forms 1099 are accurately prepared, filed, and furnished on time.
To maintain compliance, practitioners must understand which forms are required for specific transactions, applicable filing and furnishing deadlines, the information that must be reported, and the procedures for correcting errors. They must also be able to determine whether payments are subject to backup withholding, identify reporting obligations for different payees, and establish appropriate due diligence procedures to reduce the risk of penalties, including situations involving incorrect information returns.
The IRS requires electronic filing when a filer is required to submit 10 or more information returns across all types and is retiring the FIRE (Filing Information Returns Electronically) system for returns filed after 2026. This session will address the latest available regulatory and technology developments and explain what filers need to know to prepare for the 2026 reporting year and beyond.
Areas Covered
1. 2026 Updates to Forms 1099-MISC and 1099-NEC
- Key changes affecting 2026 information returns and important considerations for the 2027 filing season.
2. Reporting and Filing Requirements
- Filing and recipient furnishing deadlines, electronic filing requirements, and important changes affecting 2026 forms.
3. Understanding Information Returns
- What information returns are, how to use the IRS Guide to Information Returns, and when Form 1099 reporting is required.
4. Identifying Reportable Payments and Payees
- Determining which payments and payees are subject to reporting requirements, including when Forms 1099-MISC, 1099-NEC, and 1096 apply.
5. Form W-9 and Taxpayer Identification Numbers
- Using Form W-9 to determine reporting requirements, selecting the appropriate TIN, and maintaining proper documentation.
6. IRS Information Returns Intake System (IRIS) and Electronic Filing
- Understanding IRIS filing procedures, electronic filing requirements, and the process for obtaining an IRIS Transmitter Control Code (TCC).
7. Backup Withholding and B Notices
- Determining when backup withholding applies, responding to B Notices, and addressing incorrect or missing TINs.
8. TIN Solicitation and Verification
- Procedures for obtaining and verifying vendor TINs and reducing the risk of penalties associated with missing or incorrect taxpayer information.
9. Payment Card Reporting Rules
- Understanding payment card reporting requirements and their impact on Form 1099 reporting responsibilities.
10. Common 1099 Reporting Errors
- Identifying common reporting mistakes, procedures for preventing errors, and requirements for correcting Forms 1099.
11. Due Diligence and Reasonable Cause
- Practical procedures for establishing reasonable cause, avoiding or mitigating penalties, and maintaining adequate supporting documentation.
12. 1099 Penalties and Corrective Actions
- Understanding penalties for late, missing, or incorrect Forms 1099 and the corrective steps available when reporting requirements are not met.
