Massachusetts has become the first state to take action toward collecting tax money lost in the sharing economy. The commonwealth recently lowered the threshold for reporting income on the 1099-K to a level far below federal requirements. Sharing-economy companies that are third-party settlement organizations (TPSOs) use form 1099-K to report payments to non-employee service providers. […]
The tax compliance playing field has gone global, with a complex web of intersecting, and sometimes conflicting, tax laws and jurisdictions. The digital era of tax compliance requires tax compliance software that can support centralized control and oversight – otherwise, companies will be vulnerable to missed deadlines, missed regulation changes, errors and discrepancies, fines, penalties and […]
Multichannel and Internet Retailers Benefit from 40 Percent Performance Gains in Tax Determination Transactional Performance If you read the recent Black Friday and Cyber Monday reports for 2017 in the media, many sourced from the National Retail Federation (NRF) or Adobe Analytics, the main takeaway was the accelerated evolution from brick-and-mortar to online retail. This […]
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, […]
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 […]
What are the skills today’s tax analyst needs to prepare for the future of indirect tax? You may have gone into the profession thinking, “I’m better at math than language, and being a tax analyst sounds like a good career choice. It could get boring, but I’ll manage.” You may have been right on the […]
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 & […]
Sovos was on the road for one of our local Global Compliance Series (GCS) events at The Palm in Los Angeles last week. Our experts — Matt Walsh, Principal of Indirect Tax at Sovos, and Tim Kirkpatrick, Director at PwC — presented to tax leaders from primarily retail and manufacturing businesses on the challenges of […]
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. […]
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 […]
Congratulations! Your business is expanding. Sales are up and in order to meet the client demand, you’ve opened new facilities and distribution centers in new locations. You are starting to enter different product lines and offer implementation services. You’ve even started a reseller program so you can reach new markets. The downside is that now […]
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 […]
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 […]
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 […]
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 […]
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, […]
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 […]
This week we look at three interesting sales tax compliance articles from around the Web you may have missed while manually looking up tax rates, entering exemption certificates for new customers or submitting IT help requests for changes to your ERP. 1. Over at FEI Daily, Tom Nicolosi and Carey Oven discussed the many reasons […]