1099-MISC Basics (Training Edition)

In 2020, Form 1099-NEC replaced Form 1099-MISC for Reporting Nonemployee Compensation. Both forms are now required for many businesses and organizations. If you are looking for 1099 training for 2020 and later years, please check out our Form 1099-NEC and Form 1099-MISC Training Course.

Once purchased, you own the course and can use it over and over again to train employees and clients! Best of all, our Form 1099-MISC Training Course dovetails with our Employee vs. Independent Contractor Training Course, making them a perfect pair for comprehensive instruction.

Why is Form 1099-MISC Training Important? The US Treasury Department believes (rightly so) that the most significant cause of unpaid tax in the United States is small businesses and organizations failing to file required Form 1099-MISC. To combat this noncompliance epidemic, the IRS added two Perjury-Trap / Intentional Disregard 1099 questions to all business returns in 2011.

Then, in 2015, congress drastically increased the penalties for not filing Form 1099-MISC when required (and adjusted them for inflation). The penalty for not filing a single 1099-MISC is now $260+. The penalty for intentionally disregarding Form 1099 filing requirements is $530+ for each 1099.

Making matters worse is the fact that these penalties can be assessed separately to 1) Failing to file Copy A of Form 1099-MISC with the IRS, and 2) Failing to provide Copy B of Form 1099-MISC to the recipient, effectively doubling the penalty for each 1099!

More than a handful of unfiled 1099s can force a business or organization to close its doors forever. Those who are responsible may lose their jobs or face accusations of negligence.

Why Overnight Accountant 1099-MISC Training? Our Form 1099-MISC Training Course is designed to help your business, organization, or clients remain in compliance and avoid penalties. You own the course and can use it over and over to train employees. The course includes a Workbook and Answer Guide, a Certification Test and Answer Guide, and even a Frame-Worthy Certificate for students who satisfactorily complete the training.

Start Learning and Training Today!

If your employees, clients, HR, or payable department need comprehensive training on Employees and Contractors as well the consequences and defenses of misclassification, please check out our Employee vs. Contractor Training Course.

Lesson Listing

Here is a list of the lessons in this course and a brief description of what you'll learn in each lesson.

Introduction and Penalties
This lesson provides an overview of the Form 1099-MISC Basics Course, the function, and purpose of Form-1099 MISC, and the most persuasive reason to file all required Form 1099-MISC(s): Gigantic penalties! For more information on the IRS’s struggle to get businesses to file Form 1099-MISC check out Brett’s Article Form 1099-MISC Noncompliance (Can Literally Destroy Your Business).
Who Must File Form 1099-MISC
Businesses must file Form 1099-MISC when they make payments that require it. The rules, however, are not as simple as they may seem. This lesson will cover the most common types of payments that require Form 1099-MISC and the payees that must receive Form 1099-MISC.
Rents
Many owners and managers are surprised to learn that many types of rent require the filing of Form 1099-MISC. This lesson will cover the forms rent payments that require a Form 1099-MISC and the payees required to receive it.
Box 7 Nonemployee Compensation
The most common payment businesses make that require a Form 1099-MISC are those made for services to businesses and individuals that are not employees of the payer. This lesson will review the many forms of nonemployee payments that require a Form 1099-MISC (and a few that don’t). It will also cover payees required to receive Form 1099-MISC (and a few that aren’t).
What You Need to File Form 1099-MISC
In order to properly file Form 1099-MISC you must obtain some important information from each payee. This lesson highlights this information and why obtaining it PRIOR TO paying potential 1099-MISC recipients is so important (hint: it involves avoiding more gigantic penalties). It will also review Form W-9, the most common form used to obtain this information, and Form 1096 which must accompany Form 1099-MISC(s) sent to the IRS.
Completing Form 1099-MISC and Form 1096
This lesson will discuss the various copies of Form 1099-MISC and to whom (and under what circumstance) each copy must be sent. Lesson Six also covers the various - box-dependent - due dates for Forms 1099-MISC, and provides step-by-step instruction for the proper completion of Form 1099-MISC and Form 1096. Finally, it will show you how to timely file Form 1099-MISC and Form 1096 with the IRS.

All courses and articles are for informational purposes only and do not constitute tax advice. Taxes are complicated - do not act on course information without consulting a professional. Always refer to treasury regulation before making any tax decision. Read the full disclaimer.

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