This blog was updated on November 28, 2023 Direct state reporting for 1099s has increased regulations over the past decade. These regulations include earlier due dates, lowered thresholds and additional reporting requirements. States have also seen late reporting, inaccurate and non-reporting for decades. When an individual or business does not pay the proper amount of […]
Drone usage has increased significantly in recent decades, far beyond their initial use in the military. They can be expensive themselves and, equally, can also cause damage to other parties or property, which is why many people and companies choose to insure them. This blog considers the insurance premium tax (IPT) and parafiscal charge treatment […]
Canada’s Border Services Agency (CBSA) has introduced CARM, a new process to modernise and digitalize import of goods in Canada. The agency’s vision is to deliver a globally leading customs experience that facilitates legitimate trade, improves compliance and revenue collection and contributes to securing Canadian Borders. What is CARM? CARM, which stands for CBSA Assessment […]
Taxes are one of the primary compliance concerns for direct-to-consumer (DtC) shippers of wine, and one of the more complex ones. The 47 states, plus D.C., that permit DtC shipping of alcohol want to ensure there is parity between alcohol sold in-state and any coming from out-of-state sources. So, if a bottle of wine is […]
Direct state reporting obligations can quickly become complicated for any business, and if done incorrectly, state penalties can add up rapidly. Direct state reporting has been required by many states for decades, however, only recently have we seen states increase enforcement surrounding their reporting requirements. States that participate in the Combined Federal State Filing (CF/SF) […]
Kentucky just entered its third year of DtC alcohol shipping, opening doors for wineries, breweries and distilleries to expand their product reach. The change was especially welcomed by the Kentucky Distillers’ Association (KDA), which helped craft and guide the landmark DtC bill in 2020 that established these permissions. Founded in 1880, the KDA is the […]
The IRS created the Combined Federal State Filing (CF/SF) program more than 20 years ago to help alleviate the administrative burdens on small businesses reporting 1099 information to states. This program integrates federal and state filings. The IRS uses information filed in federal filings and then forwards relevant information to states on a business’ behalf. […]
The California Voluntary Compliance Program (VCP) is now available, according to an announcement from the California State Controller. For the first time, we are hearing from the State Controller’s Office (SCO) regarding the VCP authorized by the California legislature in September 2022. The announcement on the SCO’s website provides guidance concerning the upcoming program and […]
Sovos ShipCompliant’s recent 2023 Direct-to-Consumer (DtC) Wine Shipping Report, released with our partner Wines Vines Analytics, showed the first-ever decline in both value (-1.6%) and volume (-10.3%) of shipments. While these numbers are concerning, it’s important to look at the industry in its entirety and keep in mind the overall context of pandemic responses from […]
While the first annual Direct-to-Consumer (DtC) Spirits Shipping Report, presented by Sovos ShipCompliant and the American Craft Spirits Association (ACSA), found that 80% of regular craft spirits drinkers would purchase spirits for DtC shipping monthly if permitted in their state, it’s not necessarily as apparent to producers how they can legally ship spirits DtC. We’ve […]
Tax identification numbers (TINs) play an extremely important role in the 1099 reporting process. However, it is often misunderstood just how important a role valid TINs play. If incorrect names and/or TINs are reported, the consequences can be substantial. Here are key basics to remember about TINs when filing 1099s. What is the initial impact […]
By Wendy Walker, Solution Principal, Sovos and Jessica Metts, Director of Client Services, Comply Exchange With the 1042-S reporting deadline approaching , Comply Exchange recently partnered with Sovos to deliver a webinar breaking down the end-to-end information reporting and withholding lifecycle. A lot of withholding agents or payers do not think of the information reporting […]
Craft beer drinkers want expanded direct-to-consumer (DtC) beer shipping options, and if recent pieces of legislation are any indication, they may soon start to get that wish. Currently, several states have introduced bills that could expand the DtC alcohol shipping landscape for breweries and wineries alike. Expanded DtC beer, wine & spirits shipping – by […]
Craft beer drinkers want their beer shipped DtC—legally—and they are willing to pay for it. Those are among the conclusions of the third annual Direct-to-Consumer (DtC) Beer Shipping Report, released this March by Sovos ShipCompliant in partnership with the Brewers Association. The report includes a regulatory review of the DtC beer shipping channel, the latest […]
By Judy Vorndran, J.D., CPA, TaxOps and Nancy Steele, TaxOps To deal with the uncertainty of evolving sales and use tax policies in numerous jurisdictions, businesses have increasingly turned to software providers to deliver the right rates and calculations for each transaction. Unfortunately, calculating the amount of tax due is only part of what it […]
By Andrew Adams, Editor, Wine Analytics Report The winery market has entered the next era of DtC wine shipping, where we saw total shipments for the past year declined 1.6% by value and 10.3% by volume. While the declines are unprecedented in the more than 12 years Wines Vines Analytics and Sovos ShipCompliant have tracked […]
In our recent blog, “California – One Step Closer to a Voluntary Disclosure Program,” Freda Pepper outlined everything we currently know about the program, including who will be eligible to participate, a requirement to complete an education program, timeline requirements and, most importantly, the benefits related to completing the program. While there’s a lot that […]
The Supreme Court has issued its decision in Delaware v. Pennsylvania and Wisconsin, and Arkansas v. Delaware (the MoneyGram litigation). It is the Court’s opinion that Agent Checks and Teller’s Checks (check instruments) issued by MoneyGram are similar to “money orders and other similar instruments” and should be escheated according to federal law. As a […]