You’ve probably seen the box on the 1099-NEC or 1099-MISC for “federal income tax withheld,” but what does backup withholding really mean? Despite its significance, many businesses overlook this critical compliance area. The Treasury Inspector General reports that over 400,000 businesses annually fail to execute backup withholding as required. Backup withholding is essential when you don't have your contractor’s taxpayer ID number at the time of payment or in specific CP-2100 letter situations where the contractor fails to respond to your B Notice within 30 days. The consequences of neglecting backup withholding can be severe, including substantial fines and penalties.
This comprehensive training session by Jason Dinesen EA, LPA, will demystify the intricacies of backup withholding. Attendees will learn when backup withholding is required, how to report it using Form 945, and the steps to take if the IRS initiates an inquiry. The session will also examine a recent court case where the IRS attempted to levy $1.2 million against a small business for non-compliance. By participating in this webinar, you will gain essential knowledge and practical tools to ensure your organization adheres to IRS regulations, thereby safeguarding against significant penalties and enhancing overall compliance.
What You'll Learn:
After participating in this webinar, attendees will be able to:
Accountants, CPAs, Tax Preparers, Bookkeepers, Enrolled Agents, Office Managers, Small Business Owners, Entrepreneurs