Sovos Acquires LTtax, Strengthening Automated Tax Withholding Capabilities

Andy Hovancik
December 9, 2020

Earlier this week, Sovos acquired LTtax, a New York-based provider of payroll withholding and unemployment tax software. The company serves some of the largest retailers, financial institutions and insurers operating in the United States, and its automated withholding technology solves a critical need for large enterprises that manage their own payroll services. Sovos saw an opportunity to extend that capability to non-wage withholding needs, as well — for things like backup withholding, annuity and pension distributions, nonresident alien and Foreign Account Tax Compliance Act (FATCA), and more.

Sovos has deep withholding reconciliation capabilities, and we’re the largest private filer of 10-series IRS forms. This latest acquisition, our fifth of 2020, bolsters our 1099 information reporting offerings by adding withholding automation to the mix. The result is a compelling solution for corporate tax teams that want a single source for withholding management. That’s a particularly strong interest among large life insurance and annuity companies, many of which we serve.

On a mission to Solve Tax for Good

With a strong reputation in its market and a dedicated team of product and support staff, LTtax brings a long-standing customer base and tradition of excellent service, in addition to its technology offering. In 1994, the company founders first automated what had been a manual process for a few marquee customers. More than 25 years later, the team is still known for personalized service and support to a loyal customer base, and we’re glad to bring them into Sovos with last week’s acquisition.

With the acquisition of LTtax — and of ETM, Booke and Keane before it — Sovos now supports the majority of insurance companies in the U.S. These customers come to us for statutory reporting, unclaimed property, tax reporting, or a combination of all three. As we near the end of Sovos’ most acquisitive calendar year yet, I’m reminded that each newly acquired business is a reaffirmation of the promise we make to our 8,000+ customers around the world: to help you Solve Tax for Good, no matter where you do business, and no matter how regulations and mandates continue to evolve.

 Learn more about Sovos here.

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Author

Andy Hovancik

As president and Chief Executive Officer, Andy guides Sovos’ mission to deliver peace of mind through intelligent compliance for the 4,500 clients that are met with demanding tax compliance and reporting obligations while growing their businesses. Andy joined the company in January 2013 at a time when the industry expertise, market leadership and experience of Taxware, VAT Resource, Convey and ShipCompliant solutions were combined under Sovos to resolve businesses’ most complex compliance challenges on a global scale. His leadership experience spans more than 25 years, during which time he has successfully grown technology companies with a forward-thinking approach to solving key challenges in the services and manufacturing industries. With 15 years of experience in regulatory and compliance software, Andy understands the challenges faced with business-to-government compliance and ensures Sovos serves as a proactive partner in compliance, rather than a reactive solution. Andy holds a B.A. in Business Management & Marketing from Cornell University and an M.B.A. from Tulane University.
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