As companies chase down vendors’ missing taxpayer identification numbers (TINs), it is helpful for the master file or AP staff to know what they are looking for. If the TIN is wrong, it might not be immediately apparent. But if the TIN is “obviously incorrect,” as the IRS calls it, the IRS treats it the … How to Know If a Vendor TIN Is Incorrect
It’s late September and time to plan for 1099 reporting for 2021. That means checking your vendor master for missing taxpayer-identification numbers and classifications and formulating a plan to collect and verify them by the end of the year. It also means preparing for this year’s form changes. Last year saw changes to the 1099-MISC … Time to Check Your TINs, Plus: 1099-MISC and NEC Form Changes
Ready, set … check your vendor tax IDs. We’re well into the 4th quarter. It’s time to think about 1099 reporting. That means having correct tax IDs for your vendors. First, you need to be sure you have a tax ID for each vendor. Second, you will save trouble later if you take the time … Preparing for Tax Reporting Season: Changes Ahead
Have you gotten yours? Not tricks or treats, nor a political surprise. The other October surprise: CP2100s! Twice a year, in spring and fall, the Internal Revenue Service (IRS) sends out forms CP2100 and CP2100A. They address missing or incorrect taxpayer-identification numbers (TINs) on 1099 payment reporting. Whether you get a form 2100 or 2100A … October Blues: B Notices and Backup Withholding
Item Purpose
The Tax Cuts and Jobs Act, public law 115-97 aka the new tax law, includes a reduction in the backup-withholding rate starting with tax year 2018. Backup withholding is required when you do not have a valid taxpayer ID number for a payee on payments of rents, royalties or fees for service to independent contractors. … Did You Know? Backup Withholding Rate Changed for 2018
New vendor onboarding and vendor record upkeep are insignificant administrative tasks, right? Tell that to the CPO or department head when you hold up a vendor payment because you don’t have a tax ID. Or to your finance VP or CFO when you just found out you paid money to a phony vendor. Tell it … The “Insignificance” of Vendor Onboarding
