Blog

Why the IRS Needs to Release Cryptocurrency Tax Guidance

Despite IRS Commissioner Charles Rettig’s promise of “within the next 30 days” more than 30 days ago to Congress regarding the release of forthcoming cryptocurrency tax guidance, we have not seen anything materialize.  As we mentioned previously, the ongoing confusion related to tax reporting obligations continues to plague payers such as crypto or digital currency […]

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The IRS Is Allowing TIN Masking on Form W-2. Here’s Why It’s a Good Idea

At last, the IRS is allowing payers to truncate, or effectively mask, tax identification numbers (TINs) on Forms W-2 sent to payees. The decision comes after years of concern from companies and taxpayers about the risk of exposing TINs, or Social Security Numbers in the case of individual payees, in W-2 distributions.  The new policy […]

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South Dakota v. Wayfair One Year Later Webinar Questions Answered

Thank you all who joined our webinar on June 27, “South Dakota v. Wayfair One Year Later – Sales Tax Retrospective and Look Ahead,” and submitted the following questions during the Q&A portion. They really put our regulatory analysis team to the test, and we hope you find the responses valuable as you prepare for […]

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TIGTA Report Reveals Value of TIN Matching, Problems with B Notices

The good news is that real-time TIN matching works to reduce errors in 1099 reporting. The bad news is that when errors do sneak through, organizations aren’t necessarily finding out about them until it’s too late. Those are the primary conclusions of a TIGTA report released earlier this month, titled Improved Communication and Outreach With […]

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What the Tennessee Wine and Spirits Ruling Means for DtC Wine Shipping

Supreme Court Rules Against Tennessee’s Discriminatory Residency Requirements After months of waiting by the beverage alcohol industry, the United States Supreme Court published its ruling in Tennessee Wine & Spirits Retailers Ass’n v. Thomas on June 26, 2019. The 7-2 opinion, written by Justice Samuel Alito, clearly and definitively struck down a rule in Tennessee […]

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IRS Releases New Look W-4 to Mixed Reviews from Businesses

The IRS has released a draft version of the new 2020 Form W-4, Employee’s Withholding Allowance Certificate. It represents the most sweeping changes to this form since the Current Tax Payment Act of 1943 was passed, requiring employers to withhold taxes from employee payroll and remit them to the IRS on their behalf.  The form […]

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Louisiana Ready to Tax Remote Commerce – Are You Ready to Collect?

While Louisiana is one of the few states (as of today) that does not actively require out-of-state vendors to collect their sales tax, it’s not for lack of effort or forethought. Louisiana has been thinking about taxing remote commerce for a few years and now, they are ready to act and make the requirement fully […]

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South Dakota v. Wayfair One Year Later – Retrospective and Look Ahead Webinar

Since the groundbreaking Supreme Court decision in South Dakota v. Wayfair last June, tax compliance requirements of sellers have undergone a seismic shift. In recent months, we have also witnessed a series of after-shocks directed at setting the foundation for U.S. sales tax compliance in the modern age. In a live webinar and Q&A, “South […]

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Sovos Again Named a Top Workplace Based on Employee Satisfaction

Earlier this week, the Star Tribune (Minneapolis, MN) released its annual list of Top Workplaces. The newspaper compiles this list based on employee satisfaction scores for companies across Minnesota. Sovos has once again been named to this list as a national standard setter of leading workplaces because of the actions we take to put employees […]

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Marketplace Sales Tax Collection Rules and Current State of Affairs

Marketplace sales tax laws are being used by states as an additional means to collect more sales tax revenue from remote sellers on marketplaces like Amazon, eBay, Etsy, and WalMart. These online marketplaces and the rules being introduced to compel marketplace tax compliance have introduced new sales tax collection and remittance questions and complexity. According […]

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IRS Promises Clarity on Crypto Tax Regulations This Month

For the second time in the last month, the IRS has alluded to forthcoming guidance related to cryptocurrency and digital asset transactions.  IRS Commissioner Charles Rettig said in late May that clarification on crypto tax regulations might arrive by the end of June and gave further hints as to what might be included in the […]

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What the Sovos Acquisition of ETM Will Mean for Insurers, Financial Institutions

It’s been quite a week at Sovos. Hours after announcing Sovos’ intent to acquire Foriba, expanding our geographic footprint into Turkey and bringing together the pioneers of e-invoicing compliance, we shared our plan to expand into new and existing markets in the U.S. with the acquisition of Eagle Technology Management (ETM). Eagle Technology Management (ETM) […]

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TIGTA Audit Highlights Gaps in IRS Withholding Controls

The Treasury Inspector General for Tax Administration (TIGTA) reported results of a recent audit of the IRS internal controls in place to ensure that the withholding reported on information returns (i.e., Forms 1099) is accurately reflected on Form 945, Annual Return of Withheld Federal Income Tax, and that those amounts were paid to the IRS. […]

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Cryptocurrency Taxes: IRS Responds to Pressure from Congress

After four separate letters from members of Congress urging the agency to release clarification on cryptocurrency taxes, IRS Commissioner Charles Rettig finally responded to Representative Tom Emmer, R-Minn., on May 16, with confirmation that clarification is forthcoming. While Rettig’s letter did provide some specifics on what the guidance would cover, it did not include a […]

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How to Prepare for 1099 Reporting Changes to Come in the Gig Economy

There has been a lot of attention paid to “gig” economy workers lately, and that includes some scrutiny by state and federal tax authorities. The growing impact to tax revenue as a result of under-reporting of income and minimal payments of self-employment taxes from this ‘new’ sector of American workers has not gone unnoticed. Academic […]

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Best Practices for Coping with the IRS Crackdown on 1099 Backup Withholding

Background Generally, under Internal Revenue Code 3406(a)(1)(A), when a payer of US source income fails to collect a US tax identification number (TIN) in the manner required for the type of payment being made, 24 percent backup withholding is applicable at time of payment. Filers are required to remit those amounts to the IRS and […]

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Shielding SAP Central Finance Migrations from Tax Compliance Mandates

With more companies focusing on global integration, cross-border supply chains and expanding ecommerce, governments across the globe are introducing new ways to enforce tax rules and close their tax gaps. The evolving global regulatory environment produces unique tax determination and reporting challenges in the United States and additional VAT and e-invoicing compliance challenges around the […]

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Colorado Economic Nexus Law Change for Remote Sellers

In December 2018, the state of Colorado made substantial changes impacting the sales tax collection and remittance requirements imposed on both in-state and remote sellers. The state extended a grace period for companies to comply with these requirements through May 31, 2019. Beginning June 1, 2019, under the new rules, most companies will be required […]

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