Blog

Expansion of Personal Property Lease Transaction Tax in Chicago Delayed until January 1, 2016

Sovos Compliance has been closely watching recent developments in the City of Chicago as it relates to the issuance of new guidance defining the proper scope of both their Personal Property Lease Transaction Tax as well as their Amusement Tax. Key rulings interpreting both taxes were scheduled to take effect on September 1, 2015. However, […]

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CRS: The First Steps Towards Compliance and Guidance Begins

There has been a recent development in the evolution of global information reporting and the Common Reporting Standard (CRS) reporting requirements. On August 7, 2015, the OECD (Organization for Economic Co-operation and Development) released the first version of a CRS Implementation Handbook, which is meant to provide practical guidance to assist government officials and financial institutions […]

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Sovos Compliance Helps 1099/1095 Filers Avoid Increasing Penalties

Offering another detailed webinar and supporting educational materials to help businesses with tax compliance and to mitigate new penalty increase exposure. MINNEAPOLIS, MN.  AUGUST 12, 2015 On June 29, an update was passed to the Trade Preferences Extension Act. H.R. 1295 (now PL 114-27). This legislative change more than doubles the penalty per record from […]

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Summer Cruising in New York

Most people are probably not aware that the taxability of a cruise ticket in New York depends on whether or not food or drink is included in the ticket price. For instance, many cruises offer “all-inclusive” tickets that include all of your meals and drinks in the ticket price. Some cruises offer tickets that simply […]

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Major Changes to Indirect Tax Legislation in Latin America

Compliance with strict e-invoicing, finance and tax reporting legislation throughout Latin America is not a one-time, set-it-and-forget-it process. The pace of legislative change in this region is faster than ever as governments aim to expand the tax base and collect every penny, peso or reais they can. New mandates commonly move from initial legislation through […]

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Sovos highlighted on Law360: 1099 Filing Penalties

1099 filing penalties have recently doubled. On July 27, Law360 contributor Eric Kroh published an article featuring Sovos Compliance CMO Troy Thibodeau. The article focuses on the increased need for the government to raise revenue through stricter compliance enforcement of compliance rules, including the Trade Preferences Extension Act of 2015. This update affects not only all 1099 filers, but also […]

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Indirect Tax Changes in Puerto Rico

As result of the passage of Law 72-2015, the indirect tax system of the Commonwealth of Puerto Rico is undergoing a remarkable transformation which is taking place over three distinct stages, culminating with a new Value Added Tax scheduled which will go into effect on April 1, 2016.   Last week, our Tax Experts, Ramon […]

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Business-to-Government Regulations Streamline Procurement Processes

As business-to-government compliance mandates spread throughout Latin America and into the global economy, these countries are regularly introducing new ways to standardize and automate financial reporting and tax collections. New regulations often go well-beyond traditional e-invoicing, affecting even more business processes. Recently, we examined how these mandates add complexity to the sales process; this week, […]

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Update: State of Compliance following the March 2015 Judgment of the ECJ

EU Court Rules E-Books Are Services, Not Goods – Update to previous post. Update 8/4/2015 Sovos Compliance has continued to monitor the repercussions of the ECJ’s decision in March and would like to report on some major developments since our last blog posting. In response to the decision of the European Court of Justice (ECJ) […]

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New Increased Penalties Directly Affect ACA Tax Reporting

On June 29th, an update was passed to the Trade Preferences Extension Act. Not only are all 1099 filers affected, but incorrectly reporting tax information on the new Affordable Care Act required 1094/1095 forms will also be subject to these newly enhanced penalties. Affordable Care Act Reporting Implications This penalty update directly affects the new […]

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1099 vs. W-2: The Overlooked Issues of Tax Compliance

Recently, a boom in “on demand” services has caused a heated debate over the issue of 1099 versus W-2 reporting. Many start-up and application-based companies are finding themselves having to decide whether to declare workers as employees, thus reporting with a W-2, or as independent contractors, which requires the use of a 1099-MISC form. Aside […]

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Puerto Rico Update: Wipes and Hand Sanitizers

Early this morning, the Secretary of the Treasury of Puerto Rico published, on their website, Administrative Determination 15-13, which announced, that due to the severe summer drought, the sale of sanitizers, hand wipes and baby wipes are qualifying exempt items during the Back to School Sales Tax Holiday that started today, July 17, and will […]

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The IRS Is Doubling Down On Increasing Penalties For All 1099 Filers

On June 29th, an update was passed to the Trade Preferences Extension Act. These changes greatly enhance the penalties ALL 1099 filers will be subject to for incorrectly reporting tax information. H.R. 1295, (now PL 114-27), doubles the annual maximum penalty cap from $1.5M to $3M for all 1099’s, and more than doubles the penalty […]

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Supreme Court preserves Affordable Care Act’s tax subsidies

In a 6-3 decision, the U.S. Supreme Court issued a ruling June 26 in the King v. Burwell case that upheld tax subsidies as provided by the Patient Protection and Affordable Care Act, also known as Obamacare. Chief Justice Roberts wrote the opinion. Voting in favor were justices Ginsburg, Sotomayor, Kagan, Kennedy and Breyer.  Justice Antonin […]

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Are tax havens really going away?

There has been a wealth of discussion in recent years regarding the elimination of tax havens. Consumers and taxpayers all over the world have recognized efforts made by financial institutions and governments to put an end to those individuals and businesses being silent or creative in how they maneuver their assets. However, tax avoidance is […]

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Why Accounts Payable Must Be Automated

Mexico will be putting your tax deductions under a microscope when new eContabilidad (eAccounting) requirements go into effect this September. The SAT, Mexico’s tax authority, will now have the ability to examine accounting reports and subsequent line item tax deductions, requiring added diligence in inbound procurement processes to ensure compliance. This scrutiny demands complete accuracy […]

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FATCA inspiring new regulations

Thanks to the Foreign Account Tax Compliance Act (FATCA), foreign governments and financial institutions are assisting the U.S. Internal Revenue Service in reporting financial activity and holdings of American citizens living abroad. While the intent of the act was to prevent citizens from evading tax laws, there are opponents of the act who say it […]

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Maryland tax laws struck down for being unconstitutional

Maryland’s income tax system has been challenged and ruled as unconstitutional by the U.S. Supreme Court. The reason was that Maryland’s tax policy essentially double-taxed its residents for income earned in other states. According to Forbes, the Maryland policy was operating as a tariff, since dollars earned and taxed outside of the state’s borders were […]

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