Casual Male

Casual Male Reduces Penalties and Eliminates Manual Processing

Background

Casual Male Retail Group, Inc. (CMRG) might not be a household name, but as the world’s largest retailer of big and tall men’s apparel, along with substantial e-commerce and catalog operations, CMRG boasts nearly 500 store locations in North America and the UK, operating under the trade names of Casual Male XL, Rochester Big & Tall Clothing, Sears Canada—Casual Male, and Destination XLTM.

Business Challenge

As Casual Male grew, so did its headaches surrounding 1099 form printing, compliance, and “B” Notices. TIN matching issues were resulting in “B” Notice filings up to four double-sided pages. Maintaining the status quo exposed CMRG to additional risks and costs as well, including multiple and compounding penalties, fines and other fees, along with concerns about compliance with seemingly ever-changing Federal and State reporting requirements.

To ensure Federal and State compliance while minimizing risk, CMRG needed a system that would:

  • Perform real-time TIN validation checks to reduce “B” Notices and Penalties
  • Be current with and enforce compliance rules
  • Help manage volume increases
  • Eliminate all manual processes including printing and mailing
  • Electronically send combined Federal and State returns

Sovos Compliance’s Solution

CMRG and Sovos Compliance’s discovery process identified the need for a more integrated solution to ensure the highest level of corporate reporting compliance. “The new 1099 legislation and “B” Notice process required a better solution,” says Sonia Vargas, A/P Supervisor for Casual Male Retail Group.

“We came across Taxport A/P on a Google search, and it’s turned into one of the best decisions we’ve made for our company.”  – Sonia Vargas, A/P Supervisor for Casual Male Retail Group.

Sovos Compliance recommended the Taxport A/P system based on CMRG’s need for flexibility, streamlined reporting and scalability, combined with a real-time tax identity management solution.

Within the Taxport A/P system there were features CMRG valued most. Real-time TIN validation and vendor master tax identity cleanup, which minimizes and eliminates mismatched tax identities while significantly reducing the number of Federal “B” Notices and their required backup withholding. Another feature valued by CMRG is the ability to import existing data via delimited text or Excel spreadsheets. This ensured that CMRG could easily integrate the Taxport A/P solution into its existing accounts payable processes. CMRG also has the choice of Federal or Combined Federal State (CFS) reporting, including the management of printing, mailing and transmission to all vendors and government tax agencies. Streamlined process management provides CMRG increased accuracy of reporting due to fewer steps.

“Taxport A/P is incredibly easy to use,” says Vargas. “The data upload was smooth and problem-free, and when there are challenges, Sovos Compliance’s Customer Service team offers a workable solution almost immediately.”

The Result

Integrating Taxport A/P into its accounts payable processes enabled CMRG to significantly reduce the number of “B” Notices it received, minimize risk of penalties, fines, and back-up withholding. In addition, it streamlined processes and improved accuracy due to the elimination of manual processing. “Before Taxport A/P, the 1099 process took Casual Male two to three weeks to complete,” says Vargas. “With Taxport A/P, it takes less than one week.” Reinforcing the accolades, CMRG was the first to renew its 2011 Taxport A/P license with Sovos Compliance.