Reduce operating costs and ensure compliance with Sovos Tax Information Reporting.
As your requirements for 1099 reporting become more complex, your company has to spend more time and resources to meet the challenge of staying compliant.
Regulatory changes are constant, and business events such as mergers and acquisitions, growth, geographical expansion and new products create complexity and increase the strain on your tax, finance, AP, IT and compliance departments.
Sovos Tax Information Reporting accepts a wide range of data formats, allowing organizations to change and grow without IT or compliance restrictions.
Effortlessly track remittances, reconciliation and state withholding reporting responsibilities and never have to track payments manually or match general ledger data line-by-line against transaction-level data thanks to our 1099 reporting software.
Deliver forms to customers and vendors through electronic statement delivery, reducing costs associated with printing and mailing while providing a secure way to deliver tax information to payees with the ability to view updated tax forms real-time.
Our 1099 compliance software enables your company to stay on top of crucial 1099 reporting dates as well as any filings that have been made.
Manage all solicitation responses in one location through uploading and updating records with correct information to know which payees are subject to backup withholding and to maintain compliant audit records.
Utilize the only modern cloud-based reporting solution designed to deliver the performance, reliability and security needed for high-volume exchanges, lenders and custodians.
Sovos validates recipient information, including mailing addresses and IRS specific rules upon import for data completeness and correctness.
Centralizing data enables you to funnel multiple data sources into a single database for seamless recipient statement delivery and government tax information reporting.
Print and mail forms with a click of a button while taking advantage of negotiated print rates, National Change of Address check, and increased security with TIN masking.
Print and mail solicitations to payees appearing on IRS CP2100 or 972CG notices using the correct form of solicitation to receive updated and verified correct name and TIN information.
Sovos quickly and efficiently implements changes within solutions in response to last-minute regulatory changes.
Sovos validates vendor and customer information against IRS and other key databases to enable you to avoid reporting errors and potential penalties
Tax information reporting involves the reporting of both wage and non-wage payments made by businesses to individuals, including employees, contractors, and other recipients. Businesses are required to report these payments to the IRS and any states they have obligations in on an annual basis using applicable forms such as Form series 1099 (1099-K, 1099-MISC, 1099-NEC, etc,), W-2, 1042-S, and more. Learn more here.
An organization’s direct state reporting obligations can come from where the business is located, where the work was performed, and/or where the recipient resides.
It is important to note that state reporting requirements vary by state. Each state has the ability to create unique reporting obligations for each 1099 series forms including different thresholds, due dates, and reporting method.
As stated in TD 9972, for tax year 2023 returns and beyond, businesses are required to electronically file information returns following a threshold of 10+ returns, counted in the aggregate. This includes form series 1099s, W-2s, 1042-S, ACA forms and more.
The IRS annual reporting penalties for late or inaccurate filings can reach up to $310 per return with a maximum penalty of over $3.7M. If a business intentionally disregards their reporting obligations, they can be charged up to $630 per form. In addition, businesses also face the threat of IRS audits and additional penalties from state governments.
“I believe being with Sovos has allowed my department to take on additional business without adding employees.”
Senior Tax Analyst, Nationwide Financial
New IDC Infobrief on 1099 Compliance & Tax Withholding Management for Tech, Gig & MLM Organizations
The ways in which people earn income and invest it are changing. That shift is happening in an increasingly complex tax compliance environment. Regulators, focused on capturing revenue to help communities prosper, want more detailed tax data from businesses, and they want it faster.
You need to adapt — both to reduce the friction of tax information reporting and to meet market demands. Manual and outdated reporting processes don’t help.
Improve operational efficiency through automation and centralization of manual and/or disparate TIR processes, freeing up time for dedicated resources to focus on business-critical responsibilities and simplifying processes across all lines of businesses and regions.
Enhance customer experience by enabling a single point of access for all customers, resulting in reduced call volumes and increased speed of resolution.
Maintain compliance with a fully compliant solution backed by more than 50 regulatory analysts monitoring the regulatory environment daily.
Turn weeks of work into hours with accelerated data upload speeds of up to 120,000 records per minute.
Mitigate risk of audits and penalties by eliminating manual or slow, reactive processes.
Reduce IT and compliance involvement with a nimble solution that absorbs business and regulatory changes as they occur.
Bolster audit defense with complete and transparent audit trails.
Make reprints and corrections a breeze with up to 10 years of prior tax information easily accessible.
Eliminate the cost of B & P notices (CP2100 and 972CG) and cut the hours you spend sending solicitations by matching TINs beforehand in real time.
Turn weeks of work into hours with data upload speeds of up to 120,000 records per minute.
Print and mail forms with a click while taking advantage of our negotiated print rates, National Change of Address check and increased security with TIN masking.
Effortlessly track remittances and manage the withholding process. Never again manually track payments or match general ledger data line-by-line against transaction-level data or tax detail forms.
Do away with printing and mailing costs, and give your customers and vendors direct access to their statements.
Make reprints and corrections a breeze with up to 10 years of prior tax information at your fingertips.
Your forms and filings are always accurate, with a solution that automatically adapts to state and federal changes as they occur.
Quickly and easily file every required form, including 1042-S, 1098, 1099, 3921, 3922, 5498, W-2, W-4P, and W-9, as well as direct-to-state, Puerto Rico, Canada and Quebec form types.
“At the end of the tax season, you simply click a button in Sovos TIR, and the IRS electronic filing is done. We no longer have to worry about getting onto the IRS site.”
Karen Groff
Vice President and Assistant Treasurer, Donegal Insurance Group
