This blog was last updated on June 26, 2021
Tax season is often an extremely stressful time for compliance teams, so companies should use technology to their advantage to get through tax season. Whether companies are keeping track of receipts or completing forms to send to payees, technology is their go-to resource for tax information reporting.
Keep everything on hand with compliance technology
Technology tailored for tax information reporting offers many benefits for businesses. It’s important that organizations make sure tax departments are a part of the decision-making process when choosing this technology.
With the right technology, organizations can safeguard their business in the event of a disaster, such as a fire, and feel secure knowing their data is safe regardless of any unforeseen issues.
Get more time on IRS deadlines
Technology also gives organizations more time to meet their tax compliance obligations. For some tax forms, the IRS pushes back the filing deadline for electronic filing. Form 1099-R, Distributions From Pensions, Annuities, Retirement or profit-sharing Plans, IRAs, Insurance Contracts, etc., for example, has a Feb. 28 deadline for paper filing and a March 31 deadline for electronic filing.
Have another set of eyes
Organizations should always double check paperwork, and this is especially true when it comes to tax reporting. However, this takes time. This is not only true of the time required to review a document a second time, but also the minutes spent combing through data if the numbers don’t add up.
With the right software, tax departments have this task built into the data entry process. If the software detects an error, it will immediately provide an alert. Rather than go back through all the steps to find where a mistake occurred, tax departments can see errors highlighted in the moment.
In addition to reducing stress by saving time, tax software’s accuracy provides assurance that an organization will not need to send corrected forms or face IRS penalties for incorrect information. Tax departments can confidently hit the upload button without hesitation.
