IRS Compliance for Community Banks Part 2
Deposit Related Returns, New Nonresident Alien Reporting Requirements, Backup Withholding (B & C Notices) & Common Mistakes in TIN Matching Procedures

With penalties now $100 for failure to comply with IRS information reporting requirements, banks are at risk of higher penalty assessments. To reduce or avoid penalties, financial institutions must know how the IRS Information Return Program works, evaluate procedures for creating relationships with customers and vendors, integrate applicable changes for the current tax year, and lay the groundwork for a “Reasonable Cause” defense when creating a relationship. 

This two-part web series focuses on the IRS information reporting compliance responsibilities of the community bank. It is not designed for institutions with a global presence. It does not address withholding and reporting of FDAP income, the Form W-8 BENE or the Form 1042-S as it applies to Chapter 3 or Chapter 4 reporting.

Deposit Related Returns, New Nonresident Alien Reporting Requirements, Backup Withholding (B & C Notices) & Common Mistakes in TIN Matching Procedures.

Part 2 is devoted to the deposit side. (Reporting by fiduciaries or payors of investment interest is not covered.) Common errors in name/TIN combinations, nonresident alien interest reporting requirements (including tips for obtaining and maintaining the Form W-8 BEN) and reporting interest upon the death. (Form W-8 BENE is not reviewed.)


The IRS backup withholding program is explained in detail. Learn what is required when you receive a B-Notice or C-Notice from the IRS and how documentation is essential to the institution’s IRS compliance program. Participants learn when filing is required to report the payment of interest, contributions and rollovers to IRAs, and distributions from IRAs. (Other uses of Forms 1099-R and 5498 are not discussed.) Changes for tax year 2014 are highlighted as part of the review of forms:

  • 1099-INT (Interest Income),
  • 1099-OID (Original Issue Discount),
  • 1099-R (Distributions from Pensions, Annuities…),
  • 5498 (IRA Contribution Information),
  • 1042-S (Foreign Person’s U.S. Source Income Subject to Withholding). A brief review of Form 1099-MISC is included. A full analysis is provided in Part I.


Community bank personnel responsible for design and implementation of the bank’s IRS Compliance program. Management, operations officers, compliance officers and trainers should also find this program beneficial.


Laura Wilson, Pegasus Educational Services, LLC. Audiences routinely comment on Laura’s unique recollection of material and sense of humor. At one time she served as compliance trainer for a $3 billion savings bank. Later, she was a senior consultant/trainer for a consulting firm for financial institutions. She has also taught at schools sponsored by the OTS and the FDIC.

Credit Information

Institute of Certified Bankers: Visit http://www.icbmembers.org/login.aspx for instructions regarding self-reporting. Institute of Certified Bankers: Estimated credits: 2.5 hours CRCM (self-reporting).  


Live Webinar:

Member price: $265.00 | Non member price $530.00

On-Demand Webinar

Member price: $280.00 | Non member price $560.00


Online: Visit the CBA Webinar Catalog

Mail: Click here and mail completed form with check payable to ConferenceEdge to: (Mail at least 10 days prior to event)

1516 Xavier St., Ste 500, Denver, CO 80204

Phone: Call ConferenceEdge at (877) 988-7526 (credit card payments only)

Please Note:

  • Preferred Payment Method: Online
  • Please register online or by phone when paying with a credit card
  • Payment Must Accompany Registration – Invoices are Not Provided

Register online up to day of event. Earlier registration allows time to check your computer for an optimal experience.