New partnership allows organizations to remain compliant with tax documentation collection and validation, withholding rate calculations and compliance, and year-end tax information reporting
BOSTON – March 8, 2022 – Sovos and Comply Exchange today announced their partnership as the first and only end-to-end tax information reporting and withholding offering on the market. With over 42 years of combined experience, Sovos and Comply Exchange have closely integrated two best-in-class solutions to mitigate the risk and liability associated with noncompliance, reduce costs and effort, and automate withholding and reporting processes from start to finish.
Improper tax documentation collection and validation processes often lead to incorrect information, such as names and TINs, being reported on tax forms and incorrect withholding tax calculations. This inevitably prompts audits and penalties. According to a Treasury Inspector General for Tax Administration (TIGTA) report released in May 2021, $13.3 billion was not collected through backup withholding due to missing or incorrect information being reported through the tax information reporting process. With regulatory agencies intent on closing tax gaps, organizations must set up robust and compliant tax documentation processes so information reported through the tax information reporting process is accurate and businesses can avoid costly penalties and audits.
“This is a monumental step forward for our customers,” said Wendy Walker, solution principal, Sovos. “With this partnership, Sovos offers the most complete solution and can help organizations maintain compliance with tax documentation and collection, lower costs and automate their entire withholding and reporting processes.”
“With ever-evolving regulations and an ongoing emphasis on data security, it is increasingly challenging for businesses to become and remain compliant,” said Jessica Metts, director of client services, Comply Exchange. “This partnership will bring a first-to-market solution that will help individuals and businesses alike improve operational efficiencies and mitigate risk from start to finish.”
With Sovos and Comply Exchange’s partnership available through Sovos, customers can expect solutions that include:
Automated collection, validation and management of Forms W-8, W-9 and more
- Collection of paper or electronic W-8s, W-9s, 8233 and self-certifications
- Validation of tax documents, ensuring accuracy and compliance, including real-time TIN and GIIN validations
- Ongoing management and validation of tax documents as changes in circumstances or expiration require forms to be replaced
Accuracy in withholding rate calculations and compliance
- Calculation of correct withholding rates based on tax documentation provided by payee and IRS requirements
- Automation of tax withholding payments and return filings for federal, state and local jurisdictions, where possible
- Electronic reconciliation of withholding tax liabilities compared to amounts reported on individual tax forms
Integrated year-end tax information reporting
- Connecting tax documents and withholding data to Form 1099, 1042-S data
- Generating and delivering complete and compliant tax forms to payees through printing and mailing, or by offering electronic statements
- Streamlining the delivery of tax information to the IRS and state governments
- Solicitation and updating tax documents when notified of incorrect information by the IRS or the payee
Learn how the Sovos and Comply Exchange partnership benefits you in an upcoming webinar on March 17, 2022.
About Sovos
Sovos was built to solve the complexities of the digital transformation of tax, with complete, connected offerings for tax determination, continuous transaction controls, tax reporting and more. Sovos customers include half the Fortune 500, as well as businesses of every size operating in more than 70 countries. The company’s SaaS products and proprietary Sovos S1 Platform integrate with a wide variety of business applications and government compliance processes. Sovos has employees throughout the Americas and Europe, and is owned by Hg and TA Associates. For more information visit sovos.com and follow us on LinkedIn and Twitter.
About Comply Exchange
Founded by David Marley in 2009, Comply Exchange provides automated and intuitive tax solutions and compliance software to help clients of all industries conform with the stringent and ever-changing tax regulatory requirements with respect to information reporting and withholding. With a client base spanning all industries and backgrounds, Comply offers tailored and integrated solutions to provide for a seamless and secure customer experience. For more information, visit https://www.complyexchange.com and follow us on LinkedIn.
