The U.S. deadline for reporting financial information on accounts in foreign financial institutions is Sept. 30. Some foreign governments and financial institutions are in varying states of readiness (or lack thereof) as they attempt to comply. The reporting is per the Foreign Account Tax Compliance Act. FATCA requires foreign financial institutions to report certain information […]
The 2015 reporting deadline for the U.S. Foreign Account Tax Compliance Act is Sept. 30, and governments around the globe are doing what they can to gather information of U.S. citizens who have accounts in their financial institutions and report it back to the U.S. government. FATCA, as it is commonly known, requires foreign financial institutions […]
In recent weeks, we’ve examined the rapid expansion of business-to-government compliance in countries that rely on VAT tax income. While Latin America is the current hotbed for such legislation, similar mandates are cropping up worldwide as countries prove the effectiveness of financial legislation in maximizing tax revenues. The reach of these mandates is far – affecting […]
Recently, we’ve been examining the tidal wave of business-to-government regulations in emerging markets and their impact on business operations, including sales and procurement. Heavily involving both the accounts receivable and accounts payable teams, it’s clear that these mandates have significant implications on financial processes. However, recent legislation is adding a new operational unit to those […]
Sovos Compliance has been closely watching recent developments in the City of Chicago as it relates to the issuance of new guidance defining the proper scope of both their Personal Property Lease Transaction Tax as well as their Amusement Tax. Key rulings interpreting both taxes were scheduled to take effect on September 1, 2015. However, […]
There has been a recent development in the evolution of global information reporting and the Common Reporting Standard (CRS) reporting requirements. On August 7, 2015, the OECD (Organization for Economic Co-operation and Development) released the first version of a CRS Implementation Handbook, which is meant to provide practical guidance to assist government officials and financial institutions […]
Offering another detailed webinar and supporting educational materials to help businesses with tax compliance and to mitigate new penalty increase exposure. MINNEAPOLIS, MN. AUGUST 12, 2015 On June 29, an update was passed to the Trade Preferences Extension Act. H.R. 1295 (now PL 114-27). This legislative change more than doubles the penalty per record from […]
Most people are probably not aware that the taxability of a cruise ticket in New York depends on whether or not food or drink is included in the ticket price. For instance, many cruises offer “all-inclusive” tickets that include all of your meals and drinks in the ticket price. Some cruises offer tickets that simply […]
Compliance with strict e-invoicing, finance and tax reporting legislation throughout Latin America is not a one-time, set-it-and-forget-it process. The pace of legislative change in this region is faster than ever as governments aim to expand the tax base and collect every penny, peso or reais they can. New mandates commonly move from initial legislation through […]
1099 filing penalties have recently doubled. On July 27, Law360 contributor Eric Kroh published an article featuring Sovos Compliance CMO Troy Thibodeau. The article focuses on the increased need for the government to raise revenue through stricter compliance enforcement of compliance rules, including the Trade Preferences Extension Act of 2015. This update affects not only all 1099 filers, but also […]
As result of the passage of Law 72-2015, the indirect tax system of the Commonwealth of Puerto Rico is undergoing a remarkable transformation which is taking place over three distinct stages, culminating with a new Value Added Tax scheduled which will go into effect on April 1, 2016. Last week, our Tax Experts, Ramon […]
As business-to-government compliance mandates spread throughout Latin America and into the global economy, these countries are regularly introducing new ways to standardize and automate financial reporting and tax collections. New regulations often go well-beyond traditional e-invoicing, affecting even more business processes. Recently, we examined how these mandates add complexity to the sales process; this week, […]
EU Court Rules E-Books Are Services, Not Goods – Update to previous post. Update 8/4/2015 Sovos Compliance has continued to monitor the repercussions of the ECJ’s decision in March and would like to report on some major developments since our last blog posting. In response to the decision of the European Court of Justice (ECJ) […]
On June 29th, an update was passed to the Trade Preferences Extension Act. Not only are all 1099 filers affected, but incorrectly reporting tax information on the new Affordable Care Act required 1094/1095 forms will also be subject to these newly enhanced penalties. Affordable Care Act Reporting Implications This penalty update directly affects the new […]
Recently, a boom in “on demand” services has caused a heated debate over the issue of 1099 versus W-2 reporting. Many start-up and application-based companies are finding themselves having to decide whether to declare workers as employees, thus reporting with a W-2, or as independent contractors, which requires the use of a 1099-MISC form. Aside […]
Early this morning, the Secretary of the Treasury of Puerto Rico published, on their website, Administrative Determination 15-13, which announced, that due to the severe summer drought, the sale of sanitizers, hand wipes and baby wipes are qualifying exempt items during the Back to School Sales Tax Holiday that started today, July 17, and will […]
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), doubles the annual maximum penalty cap from $1.5M to $3M for all 1099’s, and more than doubles the penalty […]
In a 6-3 decision, the U.S. Supreme Court issued a ruling June 26 in the King v. Burwell case that upheld tax subsidies as provided by the Patient Protection and Affordable Care Act, also known as Obamacare. Chief Justice Roberts wrote the opinion. Voting in favor were justices Ginsburg, Sotomayor, Kagan, Kennedy and Breyer. Justice Antonin […]