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While “spooky season” may be over for most of us, the scariest time of year for many businesses is right around the corner: tax filing season. As they brace themselves for the flood of forms, regulatory updates, and tight deadlines, the fear of missing a critical filing or making costly mistakes can haunt even the […]

The regulatory landscape for insurance companies is undergoing significant changes with the Principles-Based Bond Project which is set to take effect on January 1, 2025. These changes, driven by the National Association of Insurance Commissioners (NAIC), will impact how insurance companies classify and value bond investments, which constitute a substantial portion of their financial assets.  […]

With the advent of new information reporting requirements for digital asset transactions, businesses are navigating uncharted territory. I’ve received countless invitations from industry experts to attend webinars or read white papers on interpretations of the new regulations, and guidance on what brokers are required to report. But beyond understanding the regulations, organizations face an even […]

Millions and millions of tax dollars are lost to fraud every year due to stolen identities, dishonest tax preparers or claims of false tax losses or dependent information. The IRS deploys a variety of processes to detect fraud including analyzing information reported on third party information returns like 1099s and W-2s compared to information reported […]

On the second Wednesday of each month, Sovos experts host a 30-minute webinar, Water Cooler Wednesday, to share the latest updates on statutory filings. In March, Sarah Stubbs shared information about the many filings due after March 1, from Market Conduct Annual Statements to health supplements for P&C and life insurers writing A&H businesses and […]

Unbeknownst to many issuers of 1099 and other information returns, Form 15397 Application for Extension of Time to Furnish Recipient Statements was debuted by the IRS in November 2023 and was required to be submitted by filers requesting an extension of time (EOT) for 2023 recipient statements. However, the IRS did not communicate the changes to […]

In a recurring theme, the IRS released communication this week that exempts the requirement to e-file Form 1042 Annual Withholding Tax Return for U.S. Source Income (Form 1042) information for 2023 transactions. Form 1042 for 2023 transactions must be filed with the IRS by March 15, 2024. Notice 2024-26 delays the new requirement to electronically […]

Affordable Care Act (ACA) reporting has started for tax year 2023. ACA reporting can quickly become complicated and costly with IRS penalties if your business does not have an efficient process in place. Although regulations have generally stayed the same for this reporting season, there are some important updates all businesses should be aware of […]

As we approach annual statement season, join us at Sovos Education for one of our refresher or short courses to get up to speed on preparation. Each of these classes are bite-sized at just one to two hours in length. Starting the first week of December, we began our mini P&C annual statement preparation courses […]

In the world of ever-evolving regulation changes, staying informed is crucial for businesses to achieve complete compliance in their tax information reporting processes. In 2023, the IRS rolled out significant updates that businesses need to be aware of ahead of filing season. We have summarized the most impactful changes you need to know about for […]

Earlier this month, I again connected with the media outlet PYMNTS to discuss important tax information reporting updates that businesses must be mindful of going into the next reporting season. Transmitter control codes (TCCs) are digital IDs that the IRS issues to businesses that need to transmit various information returns, including 1099s. However, many IRS […]

Recently, I spoke with the media outlet PYMNTS on the latest 1099-K reporting changes. Just last month, the IRS again announced a delay in enforcement of the new $600 Form 1099-K reporting threshold by third-party settlement organizations (TPSOs) for calendar year 2023. In other words, reporting will not be required by TPSOs unless a payee […]

There were numerous speakers, presentations and panel discussions on key issues impacting tax, regulatory reporting and compliance at the 2023 Sovos Comply & Connect: Reporting conference. The annual event took place in Austin, Texas from October 23-25. We’ve highlighted some of the hot topics that were covered. Leveraging AI & robotics in tax reporting Jessica […]

A few months ago, I wrote a blog on the group capital calculation (GCC) regulation. Since then, I’ve had conversations with many individuals who were in the midst of preparing their first GCC submissions. Frustration and confusion with trying to do the initial submission were common themes. Many of you are in states that have […]

A transmitter control code (TCC) is necessary for businesses electronically submitting information returns to the IRS. We’ve previously discussed how recent changes now require organizations to re-register for a TCC ahead of tax year 2023 filings. However, some filers may not receive active TCCs before their first filing deadline. On average, the IRS claims that […]

The IRS recently announced a delay of the new $600 Form 1099-K reporting threshold for third-party settlement organizations (TPSOs) for calendar year 2023. Instead, 2023 will be an additional transition year, with reporting not required unless a taxpayer receives over $20,000 and has more than 200 transactions in 2023. “We spent many months gathering feedback […]

Changes announced: Click here for the most up to date Form 1042 information. If in reading this blog you are realizing for the first time that the IRS made changes to the reporting requirements for Form 1042 by no longer accepting paper filings starting with tax year 2023 filings, you are unfortunately already considerably behind […]

Changes announced: Click here for the most up to date Form 1042 information. With the IRS changing the filing requirements for Form 1042 to be electronic, businesses must ensure that they are working with a provider that is properly prepared for those updates. Here are key things to keep in mind when evaluating your provider’s […]