Sovos highlighted on Law360: 1099 Filing Penalties

Sovos
August 7, 2015

This blog was last updated on June 27, 2021

1099 filing penalties have recently doubled. On July 27, Law360 contributor Eric Kroh published an article featuring Sovos Compliance CMO Troy Thibodeau. The article focuses on the increased need for the government to raise revenue through stricter compliance enforcement of compliance rules, including the Trade Preferences Extension Act of 2015. This update affects not only all 1099 filers, but also incorrectly reporting tax information on the new Affordable Care Act required 1094/1095 forms will also be subject to these newly enhanced penalties. H.R. 1295, (now PL 114-27), more than doubles the penalty per record from $100/record to $250/record for failure to file properly. This update also doubles the annual maximum penalty cap from $1.5M to $3M. The new penalties are effective for information returns required to be filed after Dec. 31, 2015.

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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.
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