Sovos State of Compliance Newsletter

We hope you had a safe and happy holiday season! As you get settled back in, please enjoy the December issue of Sovos State of Compliance.

  
DECEMBER, 2015


UPCOMING WEBINAR: AFFORDABLE CARE ACT REPORTING DEADLINES EXTENDED.
Thursday, January 7th, 2016 – 9am PST / 11am CST / 12pm EST - 30 minutes

Have you heard? The Internal Revenue Service just announced its decision to extend Affordable Care Act reporting deadlines under IRC sections 6055 & 6056. The extended due dates will now be: 
  • March 31st, 2016 (from January 31st) for printing and mailing 1095 Forms to recipients and;
  • June 30th, 2016 (from April 30th) for sending the 1094 electronic transmittal to the IRS through the new AIR system portal 
Sovos Compliance is hosting a brief 30 minute webinar to discuss what these deadline extensions mean and what it all means for the reporting process. Join us for this complimentary webinar to understand more about: 
  • How this may affect your organization and the market as a whole
  • What considerations the IRS had when they made this decision
  • Sovos' analysis behind this extension
  • What key considerations your organization should be making moving forward

DON'T FORGET: PENALTIES MORE THAN DOUBLE THIS TAX SEASON.

On June 29th, an update was passed to the Trade Preferences Extension Act. These changes greatly enhance the penalties ALL 1099 filers will be subject to for incorrectly reporting tax information. H.R. 1295, (now PL 114-27), the annual maximum penalty cap from $1.5M to $3M for all more than doubles the penalty per record from $100/record to $250/record for failure to file properly. The new penalties are effective for information returns required to be filed after Dec. 31, 2015, which means you need to be ready come this tax season!

TAX INFORMATION REPORTING UPDATES AND RESOURCES.

On-Demand Webinar: State and Federal Tax Information Reporting Updates

Did you miss our webinar on State and Federal Tax Information Reporting Updates? 'Tis the season to have way too much to do, so Sovos summarized the updates for you.

Automate 1099 Reporting to Save Time and Reduce Risk

Beyond the expected demands and lack of time this year come additional challenges like increased reporting responsibilities due to growth, additional reporting responsibilities from mergers/acquisitions, or even internal employee turnover or process changes requiring additional time and resources. If you need a quick solution to import, validate, print, and transmit your data, please take a moment to learn more about Taxport A/P and save yourself time and reduce risk this tax season.

Stay up-to-date on all of the latest changes by visiting our blog.

DID YOU MISS CHERYL REIDLINGER'S WEBINAR?

Cheryl Ridedlinger presented a free Webinar on Changes for this Tax Season and What to Expect Next on Wednesday, December 2nd, 2015. This complimentary webinar covered the latest changes that financial institutions need to know for this upcoming 2015 Tax Information Reporting Season and what to expect next. Topics covered included:

  • New penalty increases this year (From $100 to $250 per form and from a $1.5M cap to $3M cap)
  • New Form 1098 mortgage interest reporting requirements
  • Reporting for abandonments and foreclosures on Forms 1099-A and 1099-C
  • Backup withholding
  • Form 1042-S for Nonresident Aliens and FATCA
  • Proposal (H.R. 3856) to simplify information reporting

PLEASE NOTE: Due to copyright, we were not able to provide a recording of the webinar or slides. However, we can help assist you with any questions you have related to these topice. Please reach out to Joe Vangsgard, Sr. Segment Marketing Manager, at joe.vangsgard@sovos.com to help connect you with the appropriate contact based on your questions.

TAXPORT ACA REPORTING SOLUTIONS.

Affordable Care Act (ACA) information reporting is the largest information reporting obligation expansion since the W2 with an estimated 700+ million ACA tax forms to be filed with the IRS. That said, we are still having many conversations with organizations that are not prepared for this new reporting requirement.  If you are still working through your approach or have recently discovered your chosen provider can’t complete the process, visit our Taxport ACA resource page to learn more about how Sovos can help.

Also make sure to read our recap: The IRS AIR System Electronic Transmittal for ACA Reporting.

NEW RESOURCES FOR FATCA, CDOT, and CRS.

Global reporting has arrived, changing the regulatory landscape for financial institutions around the world in an effort to move toward creating greater transparency between countries. The Sovos solution, called Taxport Global, extends Sovos Compliance's Tax Information Reporting platform to help solve organizations’ global reporting obligations.

As the #1 US third party filer for tax information reporting, Sovos is enabling financial institutions and governments around the world  to streamline their reporting responsibilities and exceed their business goals.

Learn more about how Sovos has designed its global reporting solutions to meet your organization's needs.

FREE ON-DEMAND WEBINAR: IMPLEMENTING ACA REPORTING.

Under the Affordable Care Act (ACA), employers with 50 or more full-time employees have a new set of tax information reporting obligations they must meet per Internal Revenue Code (IRC) 6055 & 6056 guidelines. This ACA reporting is required for Tax Year 2015 and, for most organizations, the requirements of this tax obligation has fallen on HR & Benefits departments. In this program, Sovos Compliance will cover critical topics HR needs to know as they work toward meeting the ACA’s requirements for the 2015 tax year and beyond. Watch our Implementing ACA Reporting webinar to hear more about:

  • Overview of the new reporting obligations and what is required for the current tax year
  • Common challenges employers will face in implementing this new reporting process
  • ACA and IRS updates: Where we are now and how employers are doing
  • An overview of a proven solution that can help your organization efficiently meet these complex new information reporting requirements



ENJOY SOVOS STATE OF COMPLIANCE?

Read back issues from Tax Information Reporting, Indirect Tax, and VAT/Global Reporting in our State of Compliance Archive.

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