1099 Updates: Feb. 1 Through Feb. 16

Sovos
February 17, 2017

This blog was last updated on June 26, 2021

Regulatory and legislative updates to 1099 form requirements between Dec. 28, 2016 and Jan. 11, 2017.   Individual states and the IRS introduce new 1099 form requirements and changes to existing legislation on a frequent basis. Sovos documents each of these updates in its Taxport Compass portal to arm clients with the most current and accurate information and ensure that they are on the right track in their compliance efforts. Here are several recently updated requirements courtesy of Taxport Compass:

IRS Publishes Revenue Procedure 2017-15, Containing Revised QI Agreement and Changes to Form 1042-S

The IRS recently finalized the Qualified Intermediary (QI) Agreement, which financial institutions must abide by to simplify their income reporting and withholding obligations under FATCA. The QI Agreement delineates certain procedures that a QI must undertake to satisfy compliance review obligations. The final 2017 QI Agreement will apply to all QI Agreements that are in effect as of or after January 1, 2017. All QIs seeking to renew their QI Agreements must do so through the online portal before March 31, 2017. As a result of the changes in the QI Agreement, the IRS has directed 1042-S filers to refrain from using the following Chapter 3 Status Codes for Tax Year 2017:

  • Code 33: Joint account withholding rate pool
  • Code 36: Qualifying dividend equivalent offsetting payments to U.S. persons
  • Code 37: Nonqualifying dividend equivalent payments to U.S. persons – Undisclosed
  • Code 38: Other qualifying dividend equivalent offsetting payments (ECI)

Oregon Updates Administrative Rules for Information Returns and Penalties

The Oregon Department of Revenue amended its Administrative Rules, Section 150-314-0140 relative to the submission of information returns. Information returns must now be electronically submitted by all filers regardless of the number of returns being submitted. This electronic filing mandate applies to the following forms:

  • 1099-MISC
  • 1099-G
  • 1099-R
  • W-2G

In addition, the Department has done away with a penalty provision that presumes a payer “knowingly failed to file” after neglecting to file an information return for two consecutive years.

South Carolina Issues Information Letter: New Due Dates for Certain Withholding Filings and Remittances

The South Carolina Department of Revenue released an information letter regarding the new withholding due dates that went into effect this year. Forms W-2 and 1099 are due on January 31 for Tax Year 2016 and forward. A withholding agent may request a 30-day extension for filing these forms. Because of this change, the Department has also moved the due date for the Fourth Quarter Withholding Return and Annual Reconciliation to January 31 for Tax Year 2016 and forward.

Connecticut Releases 2017 Employer’s Tax Guide and the Connecticut Quarterly Reconciliation of Withholding

Connecticut has released its 2017 Circular CT, Employer’s Tax Guide. There are some changes from the previous revision:

  • Most new employers will now be classified as monthly remitters
  • Circular CT now includes a definition for the term weekly remitter
  • Removed instructions for Direct Deposit Option on Form CT-941

Connecticut has released its 2017 Form CT-941, Connecticut Quarterly Reconciliation of Withholding.  There are no changes from the previous revision.

Take Action

The IRS and individual states are constantly updating forms and regulations. Keep up with the ever-changing landscape by making use of Sovos’ Taxport Compass portal.

Sign up for Email Updates

Stay up to date with the latest tax and compliance updates that may impact your business.

Author

Sovos

Sovos is a global provider of tax, compliance and trust solutions and services that enable businesses to navigate an increasingly regulated world with true confidence. Purpose-built for always-on compliance capabilities, our scalable IT-driven solutions meet the demands of an evolving and complex global regulatory landscape. Sovos’ cloud-based software platform provides an unparalleled level of integration with business applications and government compliance processes. More than 100,000 customers in 100+ countries – including half the Fortune 500 – trust Sovos for their compliance needs. Sovos annually processes more than three billion transactions across 19,000 global tax jurisdictions. Bolstered by a robust partner program more than 400 strong, Sovos brings to bear an unrivaled global network for companies across industries and geographies. Founded in 1979, Sovos has operations across the Americas and Europe, and is owned by Hg and TA Associates.
Share this post

Hungary Supplemental Insurance Premium Tax
EMEA IPT
July 11, 2022
Extra Profit Tax: An Introduction to Supplemental IPT in Hungary

This blog was last updated on October 28, 2024 Update 7 October 2024 by Edit Buliczka Hungarian Tax Office Updates IPT Declaration Form for 2023 The procedure necessary to correct an underdeclared premium figure in Hungary can be complicated. The complexity of a correction for return form 2320 has become even more challenging. Following a […]

2025 bond project
North America Tax Information Reporting
November 4, 2024
The Insurer’s Guide to the 2025 Bond Project

This blog was last updated on November 4, 2024 The regulatory landscape for insurance companies is undergoing significant changes with the Principles-Based Bond Project which is set to take effect on January 1, 2025. These changes, driven by the National Association of Insurance Commissioners (NAIC), will impact how insurance companies classify and value bond investments, […]

E-Invoicing Compliance EMEA VAT & Fiscal Reporting
November 1, 2024
New ViDA Proposal Set for ECOFIN Approval

This blog was last updated on November 1, 2024 The Council of the European Union has released a new proposal regarding the VAT in the Digital Age (ViDA) reform. The proposal aims to modernise and streamline VAT systems across the EU, notably e-invoicing and Continuous Transaction Controls (CTC). Members States will review it on 5 […]

what is peppol
E-Invoicing Compliance North America
October 29, 2024
What it is PEPPOL?

This blog was last updated on October 29, 2024 Peppol E-invoicing explained: What it is and how it works The global adoption of electronic invoicing is accelerating. Governments worldwide are pushing to adopt e-invoicing to digitally transform their national systems and, often, to close the VAT gap. While many countries have introduced their own e-invoicing […]

remote sellers sales tax
North America Sales & Use Tax
October 28, 2024
Will Congress Act to Simplify Remote Seller Sales Tax Collection

This blog was last updated on October 29, 2024 When the United States Supreme Court ruled in 2018, that South Dakota’s law imposing sales tax collection requirements on sellers without in-state physical presence was constitutional, it did not grant states free reign. States are still responsible for ensuring that their sales tax requirements are manageable, […]

dtc shipping laws for craft spirits
North America ShipCompliant
October 23, 2024
Why It’s Time to Reform DtC Shipping Laws for Craft Spirits

This blog was last updated on October 23, 2024 While wine lovers have enjoyed the convenience of direct-to-consumer (DtC) shipping for nearly two decades, the craft spirits market is still not afforded the same access. Outdated and restrictive spirits shipping laws have kept the spirits industry from fully leveraging the benefits of DtC shipping, leaving […]