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The issue of online unclaimed property reporting is an important one. State legislation varies widely on when and how to submit unclaimed property reports, and many states now require that holders use an online reporting system in order to remain compliant. As you consider your options, it is important that your online reporting system is reliable and secure. So […]
Michael Chittenden and Michael Lloyd, or Mike & Mike, specialize in helping companies deal with all sorts of tax issues, including tax reporting. They will speak at GCS Intelligent Reporting in San Antonio about seeking abatement of IRS penalties. Sovos sat down with both to discuss why companies should generally challenge IRS tax reporting penalties. […]
Many organizations are choosing to say “so-long” to manual withholding processes to gain operational efficiencies allowing finance and accounting teams to focus on business critical tasks rather than repetitive tasks with limited value-add to the organization. In addition, eliminating manual withholding processes can mitigate process, compliance and security risk associated with managing multiple spreadsheets used […]
Caroline Bruckner is the managing director of the Kogod Tax Policy Center at the Kogod School of Business at American University in Washington, DC. She is actively-engaged in consulting with Congress on tax policy and in 2016 published the study Shortchanged: The Tax Compliance Challenges of Small Business Operators Driving the On-Demand Platform Economy. Sovos […]
The threshold for reporting income on Form 1099-K is increasingly proving to be too high for reducing the tax gap at both state and federal levels, and the problem will only get worse as the gig economy grows. Form 1099-K and California gig workers dominated discussion at the mid-September GCS conference in San Francisco. The […]
The House this week passed a bill that could lead to an increase in 1099 reporting volume for financial institutions. The Secure and Fair Enforcement (SAFE) Banking Act would provide a safe harbor from federal investigations or prosecution for financial institutions that take on cannabis businesses as customers in states where cannabis sales are legal. […]
Many companies like to report unclaimed property as soon as it shows up as abandoned on their books. I understand the desire to get the records reported to the state and out of your hair, but you may wish to slow down and let those records age. Why is this important? One reason is that […]
The tax information reporting event of the year is coming in October! Sovos will present the 2019 GCS Intelligent Reporting Summit in San Antonio Oct. 28-30. You can’t afford to miss it! Here’s why: NEW! Unclaimed Property Regulations: De-mystify unclaimed property reporting and learn how to protect your company from risk you might not even […]
California Governor Gavin Newsom is poised to sign into law a bill that would recategorize gig economy workers such as ride-share drivers from being independent workers to full-time employees. The bill, California AB5, could have a profound impact on tax withholding and information reporting at state levels, with other states closely monitoring California’s activity. It […]
If you have no new unclaimed property records for a particular state this filing year, does that mean you are off the hook? Well, not necessarily. Most states want you to file with them each year. If you’ve reported in the past, they want to hear from you even in the years when you […]
Article written By Bill Dadmun, Records and Receipts Manager, State of Virginia How many of you use the aggregate function when reporting? Does it make your life easier? Listen to this scenario and tell me if it sounds familiar. You get a call from someone that is due $49.95 from a credit balance. […]
This isn’t the first time I’ve blogged about the dangers of reciprocal filing, but I feel like it is a topic worth covering again for those who may have missed it. Reciprocal or exchange filing means reporting records to a state even though the last known addresses for the records are not in that state. […]
Many of you know Illinois is now operating under new legislation. If you haven’t had a chance to review the legislation, you’ll want to do so before filing this year’s unclaimed property report. One change to take note of is the repeal of the general business-to-business exemption. Not only is the exemption no longer allowed, holders […]
With unemployment low and productivity high, the US economy appears to be steaming along. But one key metric suggests otherwise: the yield curve is inverted, historically a sign that a recession is on the way. A downturn in the economy could have a major impact on how the IRS enforces tax reporting compliance. A yield […]
The IRS sent letters to more than 10,000 cryptocurrency holders last week, educating them about their income tax obligations associated with cryptocurrency transactions. The IRS also included information in that correspondence about applicable penalties for taxpayers who fail to report income and pay crypto taxes. The agency sent three letters to taxpayers: Letter 6173 https://www.irs.gov/pub/notices/letter_6173.pdf […]
At the Nationwide Tax Forums in Chicago last week, the IRS communicated details about the first wave of backup withholding penalty notices that payers should expect to receive in September and October. These new penalty notices are related to the enforcement campaign that kicked off from the IRS Cincinnati office in July. Background – Backup […]
Are unclaimed gift cards reportable as unclaimed property? It all depends. A recent ruling favoring the state of Delaware against an online retailer brought escheatment of unclaimed gift cards into the spotlight. Unclaimed property is escheated to the state of the property owner’s last known address, but challenges arise with gift cards due to lack […]
In a monumental moment for tax reporting professionals, the IRS has released a draft of Form 1099-NEC, the form that will eventually replace Form 1099-MISC box 7 for reporting nonemployee compensation and box 9 for reporting direct sales of $5,000 or more. The NEC should alleviate confusion that resulted after the passage of the PATH […]