1099 Reporting Concepts - New Proposed Changes - Section 1 Overview

Sep 19, 2026

1099 Reporting Concepts outlines district guidance for preparing the most current IRS and California information return forms, focusing on Forms 1099 and 1042-S. It covers an overview section, a contents structure, and detailed instructions for Form W-9, including what information it collects, when vendors must provide updates, and B-Notice handling to prevent backup withholding. It also summarizes backup withholding concepts, correction considerations, and reporting issues for California and foreign vendors, including required W-8 and 1042-S workflows and supporting IRS/FTB references.

LanguageEnglish

CategoryGeneral

FormatPDF

Pages151

Reading Time53 min

AccessFree to download

Section 1: Overview

2022 1099 Reporting Concepts

Section 2 – Form W-9

W-9 Exemption Boxes

Limited Liability Companies

Sole Proprietor

Tax Exempt/Foreign Address

Classification Chart

Sample Notice to U.S. Vendors

Test Your Knowledge

Section 3 – Backup Withholding

Federal Backup Withholding

California Backup Withholding

Handling IRS B Notices

Test Your Knowledge

Penalty Notices

TIN Matching Process

Section 4 – Reporting Form 1099 Payments

Who Gets a Form 1099?

Non-Reportable Payments

Reporting Software/Digital Content

Form 1099 Misc. Reporting (Boxes 1-3)

Reporting Beneficiary Payments

Form 1099 NEC Reporting

Test Your Knowledge

Section 5 – Form 1099 Misc. Filing Requirements

Forms 1099 Due Dates

Filing Forms Electronically

Federal and State Electronic Filing

Federal Filing Extensions

Where to go for IRS Help

California Electronic Filing

Where to Go For FTB Help

Section 6 – Correcting Form 1099 Misc.

Correction Process

Section 7 – California Reporting Issues

California Independent Contractor Reporting (DE 542)

California Contractors State License Board

California Non-Resident Vendor Reporting

Nonresident Withholding Procedures

Withholding $1500 Threshold

Section 8 – Foreign Vendor Reporting

Reporting Foreign Vendors/Overview

Foreign Vendor Forms W-8

Form 1042-S Foreign Person’s Withholding Form

Filing Forms 1042-S

Test Your Knowledge

202 2-23 1099 Reporting Concepts Keep Learning With CASBO! Section 1: Overview 2022 1099 Reporting Concepts CONTENTS PAGE Section 1-Overview Table of Contents A Disclaimer C References D New Proposed Changes E Section 2 – Form W-9 Form W-9 1 W-9 Exemption Boxes 3 Limited Liability Companies 4 Sole Proprietor 5 Parent Companies 6 Tax Exempt/Foreign Address 7 Classification Chart 8 Sample Notice to U.S. Vendors 9 Test Your Knowledge 10 Section 3 – Backup Withholding Federal Backup Withholding 11 California Backup Withholding 15 Handling IRS B Notices 17 Test Your Knowledge 24 Penalty Notices 25 TIN Matching Process 30 Section 4 – Reporting Form 1099 Payments Who Gets a Form 1099? 39 Non-Reportable Payments 40 Reporting Software/Digital Content 41 Form 1099 Misc. Reporting (Boxes 1-3) 45 Reporting Beneficiary Payments 48 Form 1099 Misc. Reporting (Boxes 4-6) 49 Reporting Attorney/Settlement Payments (Box 10) 50 Form 1099 Misc. Reporting (Boxes 16-18) 55 Form 1099 NEC Reporting 56 Test Your Knowledge 59 A Section 5-Form 1099 Misc. Filing Requirements Forms 1099 Due Dates 62 Forms 1099 Paper Forms Reporting 63 Filing Forms Electronically 65 Federal and State Electronic Filing 69 Federal Filing Extensions 70 Where to go for IRS Help 71 California Electronic Filing 72 Where to Go For FTB Help 73 Section 6 – Correcting Form 1099 Misc. Correction Process 74 Section 7 – California Reporting Issues California Independent Contractor Reporting (DE 542) 81 California Contractors State License Board 83 California Non-Resident Vendor Reporting 84 Nonresident Withholding Procedures 88 Ca. Form 590 – Exemption Form 91 Ca. Form 588-Withholding Waiver Request 92 Ca. Form 589 – Reduced Withholding Request 93 Ca. Form 587 – Withholding Allocation Request 94 Withholding $1500 Threshold 95 Withholding/Reporting Due Dates 96 Nonresident Reporting Procedures 97 Ca. Form 592 – Resident and Non-Resident Withholding Form 98 Ca. Form 592-B – Resident and Non-Resident Tax Statement 101 Section 8 – Foreign Vendor Reporting Reporting Foreign Vendors/Overview 103 Reporting Software/Digital Payments 107 Claiming A Tax Treaty Exemption 109 Foreign Vendor Forms W-8 111 Form W-8 BEN (Foreign Individuals-Non-Service) 114 Form 8233 (Foreign Individuals – Service) 116 Form W-8 BEN-E (Foreign Entities) 120 Form W-8 ECI Effectively Connected Business 124 Foreign Vendor Reporting Forms 126 Depositing Foreign Vendor Withholdings 127 Form 1042 – Annual Withholding Tax Return 128 Form 1042-S Foreign Person’s Withholding Form 130 Filing Forms 1042-S 132 Test Your Knowledge 135 B Any tax advice included in this written or electronic communication was not intended or written to be used, and it cannot be used by the taxpayer, for the purpose of avoiding any penalties that may be imposed on the taxpayer by any governmental taxing authority or agency. References ü General Instructions for Information Returns Form W-9 and Instructions on IRS Website ü Pub 515 – Withholding on Nonresident Aliens ü Pub 1281 – Backup Withholding for Missing and Incorrect TINs ü Pub 1220 – Electronic forms to IRS ü Pub 1179 – Electronic forms to recipient/payees ü Pub 1586 – Reasonable Cause Provisions (Penalties) [All available at ](All available at www.irs.gov)[www.irs.gov](All available at www.irs.gov) ü California FTB Publication 1017 ü Resident and Nonresident Withholding Guidelines [Available at www.ftb.ca.gov](Available at www.ftb.ca.gov) 1099 Reporting Concepts Districts should always make sure they are using the most current forms and instructions provided by the IRS and the State of California – IRS Federal forms • [http://www.irs.gov](http://www.irs.gov) – California Franchise Tax Board • [https://www.ftb.ca.gov/forms](https://www.ftb.ca.gov/forms) – California Employment Development Dept. • [ww

FAQs

What is the purpose of Form W-9 in 1099 reporting?

Form W-9 is used to secure taxpayer information required for a Form 1099, such as name, address, taxpayer identification number, and type of business. For certain 1099 reporting types, the name and TIN are required from the payee.

When must a vendor submit a new Form W-9?

New W-9 forms are not required each year unless the vendor’s information changes. Changes may include a name change, taxpayer identification number change, or a change in the entity type of the vendor.

How should districts handle vendors listed on an IRS B Notice?

Vendors appearing on an IRS B Notice listing must complete a new Form W-9 to avoid backup withholding of 24%. The required forms must be signed, and in a B-Notice situation you may not be able to collect an electronically submitted Form W-9.

Sep 19, 2026

Upload by Bill Black