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.