Blog

1099 Season Checklist: Meeting the Challenges of Changing Requirements

The PATH Act is back for a sequel to last season’s confusion over compliance requirements, and this time, states have joined the show. For the upcoming 1099 tax season, it’s more important than ever for organizations to keep up with new deadlines and other potential surprises. As part of the provisions of the PATH Act, […]

Read More
ACA Season Preparation: Deadlines and Penalties Get Serious

The Affordable Care Act (ACA) survived an onslaught of resistance and repeal attempts last summer, and ACA reporting for tax year 2017 reporting is definitely happening. This year, unlike in years past, extended filing deadlines are unlikely and financial penalties are very real. For filers, both the complexity and the risk of ACA filings are […]

Read More
1099 Compass Regulatory Update: Week of Nov. 6, 2017

Changes to tax compliance requirements and legislation happen frequently at the state and IRS levels.  In order to provide customers with the updated and accurate information they need, Sovos documents each of these changes in its Compass portal. Here are some notable changes in 1099 reporting from this week. South Carolina Publishes 2017 Instructions & […]

Read More
Unlucky 7: New IRS Guidance Reveals Why 1099-MISC Forms Could Be at Risk

IRS Publication 1220 contained a potentially nasty little surprise for 1099-MISC filers. The trouble centers on Box 7, the area of the form where filers signify non-employee compensation. For tax year 2016, forms with information in Box 7 are due Jan. 31, 2018, although the IRS will extend the deadline to March 2 upon request. […]

Read More
1099-Krazy: Why Tax Reporting in the Sharing Economy Is about to Get a Lot More Difficult

Two trends have converged to create a nightmare for tax information reporting. First, the sharing economy has redefined work and taxation of wages. Second, the IRS has decided that it needs to bridge the gap between revenues and taxes paid—a divide that the sharing economy has only made wider. The result is a nightmare scenario […]

Read More
Evaluate Your Tax Team for Regulatory and Business Change

Our October 24 Webinar, “Building the Tax Team of the Future to Successfully Navigate the Regulatory Storm,” is now available onDemand. During the webinar, we asked attendees a series of four detailed polling questions to help them measure their tax teams’ ability to deal with regulatory and business change. Questions were based on a Reactive-to-Proactive […]

Read More
Building a Tax Team to Meet Future Compliance Requirements

It’s clear business evolution, technology disruption and related tax compliance laws are creating increased complexity and becoming tremendous business liabilities. In today’s regulatory environment, businesses must view tax compliance as a critical function, committing the right resources, technology and process discipline necessary to maintain compliance and respond to the associated audits so the business can […]

Read More
Congress Mulling Altering Thresholds for Forms 1099-MISC and 1099-K

In both the House and Senate, Congress is looking to change the thresholds for Form 1099-MISC and Form 1099-K reporting. Form 1099-MISC, which is used to report miscellaneous income, currently has a general threshold of $600 with some exceptions (e.g. royalties of $10 or more, or direct sales of at least $5,000 of consumer products […]

Read More
Building the Tax Team of the Future to Navigate the Regulatory Storm – Webinar

There’s a growing regulatory storm on the horizon, impacting tax professionals’ roles and skills. This is causing a shift in how businesses are preparing their compliance teams to keep their businesses ahead of the curve.   Join Matt Walsh, Principal Indirect Tax and Mark Christenson, Director, of Sovos on October 24 at 2:00 PM Eastern […]

Read More
New IRS 1040 Requirement Shows ACA Reporting Is Very Much Alive

A recent move by the IRS to reject 1040 forms that don’t properly indicate taxpayers’ health-insurance status shows that the Affordable Care Act is both still in effect and relevant to tax reporting. After a summer of attempts to repeal the ACA, the law survived, as did the tax information reporting requirements it carries.  Now, […]

Read More
1099 Compass Regulatory Update: Week of Oct. 9, 2017

Changes to tax compliance requirements and legislation happen frequently at the state and IRS levels.  In order to provide customers with the updated and accurate information they need, Sovos documents each of these changes in its Compass portal. Here are some notable changes in 1099 reporting from this week. IRS Releases 2017 Version of Form […]

Read More
3 ACA Reporting Issues You Need to Prepare For Since the Graham-Cassidy Bill Fizzled

The Affordable Care Act and its associated reporting requirements remain the law of the land after the Senate announced it will not hold a vote on the Graham-Cassidy bill. Here are three things businesses need to keep in mind when planning for ACA reporting season: You’re on the hook for reporting. Senate Republicans have tried […]

Read More
1099 Compass Update: Week of September 25, 2017

Changes to tax compliance requirements and legislation happen frequently at the state and IRS levels.  In order to provide customers with the updated and accurate information they need, Sovos documents each of these changes in its Compass portal. Here are some notable changes in 1099 reporting from this week. IRS Releases 2018 Draft Form 1098-T, […]

Read More
State 1099 Reporting Requirements Follow PATH of Tighter Deadlines

The changes in state tax reporting thus far in 2017 reflect much of what we learned in 2016: State governments want more information, and they want it sooner than before. Some examples of this phenomenon can be found in states such as Iowa, Maryland, Oklahoma, and Connecticut. Iowa now requires both W-2 and 1099 reporting […]

Read More
ACA Update: What Does the Graham-Cassidy Plan Mean for Reporting?

The employer mandate could be repealed if Senate Republicans push through their newest attempt to repeal and replace the Affordable Care Act, but it appears as though ACA reporting requirements under IRC 6055 and 6056 would remain intact. Republicans introduced the Graham-Cassidy Plan in recent weeks. The Senate has until September 30 to pass the […]

Read More
How Tax Pros Can Avoid the Nightmare of 1099 B and P Notices

Note: This blog was updated on September 3, 2021. According to the Treasury Department’s American Families Plan Tax Compliance Agenda, the most recent assessment of the gross tax gap for tax year 2019 is approximately $580 billion. Recently, Treasury Deputy Assistant Secretary Mark Mazur testified before Congress that the projected tax gap could balloon to […]

Read More
Expert Q&A: Best Practices for 1099 B and P Notices

Note: This article on 1099 B and P notices was updated on September 14, 2021. Sovos recently held a webinar on best practices for dealing with “B” Backup Withholding and “P” Penalty notices related to name and taxpayer identification number mismatch errors in 1099 reporting. Here, Sovos regulatory experts answer questions from webinar viewers on IRS B […]

Read More
Expert Answers to HR Professionals’ Questions about ACA Reporting

Despite multiple repeal attempts, the Affordable Care Act (ACA) is alive and well. Employers still have to report ACA information or face increasing penalties. With ACA reporting still on HR professionals’ agenda, Sovos regulatory experts answer selected questions posed by viewers during a recent Society of Human Resources Management (SHRM) webinar. Their answers are here, […]

Read More