Case Study
BrandsMart USA
BrandsMart USA has virtually eliminated B and P notices and associated penalties using Sovos’ 1099 reporting solution.
BrandsMart USA minimizes B-notices with Sovos
Summary
Business Challenges
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The nature of BrandsMart’s business means the company files a large number of 1099 forms for an organization of its size.
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Checking for 1099 errors was a difficult process, which opened the company up to IRS penalties.
Solution
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Sovos’ 1099 reporting solution validates TINs and enables BrandsMart employees to check for 1099 errors at the point of entry.
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Sovos facilitates multiple methods of reporting, including printing and mailing 1099s.timely business practices.
Benefits
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BrandsMart has never experienced a 1099 reporting error using the Sovos solution, making B and P notices essentially a thing of the past.
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With a faster, easier process for validating 1099 information, BrandsMart financial professionals have time to focus on other business-critical tasks.
The Company
Founded in 1977, BrandsMart is a major consumer electronics and appliance retailer, with nine retail stores in Florida and Georgia and a full ecommerce website.
The Challenge
The nature of BrandsMart’s retail business means the company must keep up with issuing 1099s to contractors. Prior to using Sovos’ 1099 reporting solution, the task of checking the validity of Taxpayer Identification Numbers (TINs) before sending out 1099s was difficult and cumbersome, leaving the company exposed to potential errors and IRS penalties.
The Solution
BrandsMart implemented Sovos’ 1099 reporting solution, which validates TINs as employees enter information in the company’s system. That functionality enables BrandsMart to ensure that information is accurate long before the company sends 1099 forms to payees or reports them to the IRS. Sovos speeds and streamlines the process of 1099 reporting.
“I haven’t had any problems since I started using Sovos 1099 reporting, no errors at all. It’s hard to say how many errors
could have occurred without it.”
Janet Parisi
Director of Financial Operations, BrandsMart USA
The Benefits
BrandsMart has never had a 1099 filing error using Sovos. As such, the company has reduced its exposure to penalties and has essentially eliminated costs associated with managing the multi-year process of tracking B and P notices. BrandsMart has also averted potential withholding requirements for inaccurate filings. The Sovos solution has streamlined the reporting process and given the company’s financial staff time to focus on other business-critical activities.
Why Sovos?
Sovos’ TIN-validation functionality enabled BrandsMart to validate payees at the time of onboarding, thereby eliminating inaccuracies at reporting time. That capability allowed BrandsMart to avoid 1099 errors and therefore reduce its exposure to IRS penalties. Sovos also offered exceptional customer service in assisting BrandsMart with different forms of 1099 reporting, including printing and mailing 1099 forms.