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Important Verifications Beyond TIN Matching for 1099 Reporting

If you have been reporting 1099s for a while, you know that Tax Identification Number (TIN) matching is essential to ensure you don’t receive notices or penalties from the IRS. TIN matching typically occurs at two points when paying a vendor or customer: when onboarding a new vendor or customer based on information collected on […]

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What Causes – and Stops – State Tax Deficits?

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 […]

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4 Tips to Avoid Inaccurate Direct State Reporting

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) […]

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What is the Combined Federal State Filing (CF/SF) Program?

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. […]

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Can I File 1099s with Missing or Invalid TINs?

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 […]

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How Proper W-8 Management Ensures Seamless 1042-S Reporting

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 […]

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5 Reasons Financial Institutions are Centralizing their 1099 Reporting Processes in 2023

Financial institutions are moving toward a centralized tax solution, but why? We have found five major drivers leading this change. Operational costs Core banking solutions aren’t in business to ensure your 1099 reporting is done accurately or completely, and they likely aren’t keeping up with expanding regulatory requirements, like direct state reporting, which could incur […]

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What is a Tax Identification Number (TIN) and Why is it Important?

Having the correct Tax Identification Number (TIN) is essential when filing W-2s, 1099s and ACA forms. The nine-digit number could be a Social Security Number (SSN), Employee Identification Number (EIN), Individual Taxpayer Identification Number (ITIN) or an Adoption Taxpayer Identification Number (ATIN).  A valid Social Security Number may only be obtained through the Social Security […]

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Treasury Department, IRS Release Final eFiling Requirements

Changes announced: Click here for the most up to date Form 1042 information. The Treasury Department and IRS released changes to the electronic filing requirements for information returns this week. TD 9972 changed the requirements for a number of tax returns submitted to the IRS by businesses including a variety of 1099s, Form 1042 Annual […]

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Form 1042-S Basics for AP Professionals

When it comes to reporting payments to non-United States taxpayers, there is one form to rule them all –  Form 1042-S. There are over 30 types of 1099 forms used for reporting different types of income to U.S. citizens, such as form 1099-NEC for reporting non-employee compensation or 1099-MISC for reporting other miscellaneous payments made […]

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ACA Reporting Updates for Tax Year 2022

Affordable Care Act (ACA) reporting has started for tax year 2022. 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 […]

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IRS Delays 1099-K Reporting Threshold Changes until 2023

Editor’s note: This blog was updated on November 27, 2023 Update: Since this content was published, the IRS released additional guidance further delaying and making changes to the implementation of the lowered Form 1099-K reporting threshold for 2023 returns. Read our recent blog post for additional details about the latest Form 1099-K reporting threshold requirements. The […]

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Why Using a Payment App for Your Business May Lead to 1099s

Editor’s note: This blog was updated on December 28, 2022 Update: Since this content was published, the IRS released guidance that the implementation of the reduced $600 threshold for 1099-K reporting will be delayed until tax year 2023.  As a result, the federal threshold for the 1099-K form reporting for tax year 2022 will remain unchanged […]

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How to Prepare Your 1099-K Recipients for the 2022 Reporting Season

Editor’s note: This blog was updated on November 27, 2023 Update: Since this content was published, the IRS released additional guidance further delaying and making changes to the implementation of the lowered Form 1099-K reporting threshold for 2023 returns. Read our recent blog post for additional details about the latest Form 1099-K reporting threshold requirements.  […]

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The Great Resignation to the ‘Great Confusion’ — What It Means for 1099s

The Great Resignation may technically be behind us, but the ripple effects are far from being complete. More than ever people are pursuing a side gig in addition to a job (full- or part-time). In some cases it’s out of economic necessity, while in others it can be for a lifestyle choice or based on […]

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5 Tips for Communicating Form 1099-K Changes

Editor’s note: This blog was updated on November 27, 2023 Update: Since this content was published, the IRS released additional guidance further delaying and making changes to the implementation of the lowered Form 1099-K reporting threshold for 2023 returns. Read our recent blog post for additional details about the latest Form 1099-K reporting threshold requirements. […]

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Tax Authority Data Collection and the Analytics Behind It

Data is one of the most valuable assets of companies and individuals. Data gathered, cleaned and analysed well enables businesses to realise their utmost capabilities. With the digitization trend, error-prone paper forms, ledgers and books are replaced by electronic versions. This development gave companies more control over their data and liquidated data for further analysis. […]

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IRS to Require Electronic Filing of Form 1042 and Other Returns

This blog was updated on December 13, 2023 Editor’s note: Since this blog was initially published, there have been further updates to the Form 1042 reporting requirements. Read more information on our dedicated HUB page. Last summer, the IRS released Proposed Regulations amending the rules for filing electronically for a variety of business income tax returns, […]

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