Blog

Showdown on the Prairie – Kansas AG Invalidates DOR Economic Nexus Pronouncement

In a startling development that appears intertwined with local Kansas politics, Attorney General Derek Schmidt issued an opinion that attempts to place a temporary halt to the Department of Revenue’s (DOR) plan to extend its sales tax compliance requirements to remote sellers as of October 1, 2019 – leaving taxpayers in a state of limbo. […]

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Why Companies Should Always Contest IRS Tax Reporting Penalties

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.  […]

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MTD For VAT: Lessons and Reminders for ‘Second Stage’ Filers

7 August 2019 was a landmark in one of the most significant changes ever to occur in UK business-to-government VAT reporting.  The requirement to file VAT returns via HMRC’s new digital tax system Making Tax Digital for VAT (MTD) affected 1.2 million VAT registered taxpayers.  The vast majority file quarterly returns and were therefore expected […]

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The New Era in Greece’s Tax System

Greece made an important step to digitize its tax system and introduce an innovative platform for taxpayers to fulfil their tax obligations. The new platform will offer businesses a collaborative environment where the data they provide to the Greek Independent Authority of Public Revenues (IAPR) will not only affect their own books but will also […]

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Unclaimed Property: What Are Relationship Codes?

We get this question almost every day through our support line. Nearly every state requires relationship code values on the records you are reporting. I’ll explain what they are, how to find them, and how to use them. NAUPA has a list of standard relationship code values. They can be found here on page 23. States have […]

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Six Hidden Costs to Manual Withholding Processes

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 […]

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Expert: 1099-K Threshold Still too High; California AB5 Law “Far from Settled”

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 […]

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1099-K Threshold and California AB5 Dominate GCS San Francisco Discussions

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 […]

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Safeguarding Your SAP S/4HANA Transition from Sales Tax

On September 26, Sovos held a webinar, “How a Modern Approach to Sales and Use Tax Safeguards Your SAP S/4HANA Transition.” You may now view a recording and download the slides. VP of Regulatory Analysis & Design Chuck Maniace and Sales Engineering Manager Tim Roden shared reasons why tax compliance needs to play a role […]

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Spain: CCS Reporting Requirements – a Challenging Journey

For some of us, this journey started back in 2018 when we were notified that the Consorcio de Compensacion de Seguros (CCS) was implementing a new reporting requirement.  The intention was to make insurance companies provide information at a transactional level on an ongoing monthly basis. To date, this change has had one of the […]

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Cannabis Banking Bill that Passed House Could Lead to Jump in 1099 Reporting Volume

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. […]

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France Takes First Steps Towards Mandatory B2B Electronic Invoicing

Back in June this year, many heads were turned when the French Minister of Public Accounts and Action, Gérald Darmanin, went on record stating that the French Government has the intention of making e-invoicing mandatory also for B2B transactions. Now it seems that the Government – spearheaded on this topic by Minister Darmanin as well as by the Minister of Finance Bruno Le Maire – has moved from word to […]

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Extension of Mexican E-invoicing Mandate Puts New Pressure on Maquiladoras

A new wrinkle in Mexican electronic invoicing adds complexity to the e-invoicing process for maquiladoras, or foreign-owned factories operating along the US-Mexico border.  Compared to some other countries in Latin America, Mexico has kept its core electronic invoice, the CFDI, relatively simple. Whereas an invoice in Chile has 250 fields or more of required information, […]

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Meeting the New Indirect Tax Challenges of Accounts Payable Automation

A substantial number of companies are unaware of the full challenges around tax compliance and their procurement processes. Part of the challenge is that tax compliance must functionally sit with procurement and other business functions in the enterprise that own the data interchange, while the ultimate responsibility for tax compliance remains with the tax department. […]

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Countdown to NSO – Italy’s Electronic Purchase Orders Platform

In less a  weeks’ time, on 1 October, all purchase orders associated with the Italian National Health System (Servizio Sanitario Nazionale, SSN) will be exchanged through the public administrations’ Purchase Orders Routing Node platform (Nodo di Smistamento degli Ordini), commonly referred to as NSO. Although the new e-order mandate won’t affect the collection of VAT, […]

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Unclaimed Property: The Problem Companies Don’t Know They Have

What is unclaimed property? Companies that don’t know could be putting themselves at risk for costly audits and financial penalties. Danielle Herring, compliance manager for unclaimed property reporting at Sovos, explains what unclaimed property is and how companies should manage it. Sovos: Unclaimed property seems like a misunderstood or maybe completely unfamiliar concept for a […]

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Your Property Records, Like Fine Wine, Need to Age Properly

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 […]

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Unclaimed Property Electronic Reporting – Data Protection

In these modern times, security of sensitive data is at the forefront of everyone’s minds. Clients, vendors, and employees should be able to trust that their sensitive data such as social security numbers and account numbers are safe in your hands. You most likely have protocols in place within your company to maintain data security. […]

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