Sovos Approved as an IRS Modernized e-File (MeF) Business Provider for 1042 Returns

November 16, 2023

With e-File now mandatory for 1042 returns, Sovos is among first to be able to ensure compliance for businesses and financial institutions 

ATLANTA – November 16, 2023 – Global compliance technology solutions and services provider Sovos today announced it has been approved by the IRS as a Modernized e-File (MeF) Business Provider for 1042 returns, in compliance with updated IRS e-filing requirements. Starting with tax year 2023 filings and beyond, financial institutions or businesses filing 10 or more information returns can no longer submit Form 1042 on paper, making e-File the only acceptable option. Sovos has launched a HUB page that further clarifies the issues and provides guidance to organizations facing this change.

These new requirements hold significant implications for the wider tax information reporting industry including increased risk for failure to file the annual 1042 timely. By failing to file timely this may lead to penalties along with a Tier One audit focus from the IRS. While some e-commerce providers already offer options for electronically filing 94x form series, most have yet to receive IRS approval to file Form 1042 electronically. As of tax year 2022, Sovos now stands as one of the first providers approved for 1042 MeF filings.

“The switch to requiring e-File only for 1042 has flown under the radar a bit but is about to become a big concern for businesses needing to file their returns,” said Steve Sprague, chief product & strategy officer, Sovos. “The process for registering to file your own returns is a lengthy and arduous one and most organizations are already behind in the process. Using Sovos to file 1042 returns is the most seamless and efficient way to ensure compliance with IRS standards.”

Sovos’ technology suite and industry expertise enable businesses to confidently navigate the ever-changing landscape of regulatory requirements. Although the new electronic filing requirements do not require 94x returns to be filed electronically, Sovos leverages its advanced technology and expertise for electronic filings for all federal withholding tax returns.

“The industry has been grappling with the challenges posed by electronic filing requirements, particularly for 1042 returns,” said Wendy Walker, solution principal, Sovos. “With Sovos’ approval as an IRS Modernized e-File Business Provider, we emerge as the go-to solution for businesses seeking comprehensive tax filing services. This solidifies our commitment to excellence and underscores the trust our clients can place in us.”

For more information about your 94x and 1042 e-filings, reach out to Sovos.

About Sovos 

Sovos provides businesses with the confidence needed to navigate an increasingly regulated world. Offering a modern, IT driven response to compliance, Sovos’ solutions are scalable, reliable and secure and provide a great user experience. Sovos has more than 100,000 customers, including half the Fortune 500, as well as businesses of every size operating in more than 70 countries. The company’s cloud-based solutions 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 and follow us on LinkedIn and Twitter.

Sign up for Email Updates

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

Additional Press Releases

North America Sales & Use Tax
December 1, 2023
Sovos’ Global Tax Determination Technology Sees More than 30% Increase in Retail Sales Volume During 2023’s Black Friday, Cyber Monday

Leading compliance solutions provider meets record sales demand with 100% uptime for retail clients ATLANTA – December 1, 2023 – Global compliance technology solutions and services provider Sovos reports that its global tax rate calculation engine and database continues to provide industry-leading performance and reliability amid increasing sales during the year’s peak shopping days of […]

Read more
November 14, 2023
Sovos Names Chris Clinton Its New Chief Partner Officer

Clinton to focus on strengthening partner ecosystem to drive innovation, growth and scale   ATLANTA, NOVEMBER 14, 2023 – Global compliance technology solutions and services provider Sovos today announced the appointment of Chris Clinton as its new chief partner officer. In this role, he will continue to accelerate the growth and scale of Sovos’ global partner […]

Read more
November 9, 2023
Sovos Tax Determination Solution Wins Confeb Award for Seventh Consecutive Year

Voted the best Tax Determination Solution, Sovos is used by enterprise companies to determine taxes in addition to tax intelligence and profit margin calculation ATLANTA, NOVEMBER 9, 2023 – Global compliance technology solutions and services provider Sovos today announced that it has once again won the Confeb Award, considered the “Oscar” of the Brazilian tax […]

Read more
Tax Information Reporting
November 1, 2023
Sovos and EXL Join Forces to combine decades of solutions and consulting for the Insurance Industry

Combined solutions will ensure resiliency, reduce complexity and actively manage global regulatory compliance  ATLANTA, NOVEMBER 1, 2023 – Global compliance technology solutions and services provider Sovos today announced a partnership with EXL, a leading data analytics and digital operations and solutions company. This partnership combines Sovos’ proven record of accomplishment in delivering innovative tax software […]

Read more
North America ShipCompliant
October 24, 2023
Sovos’ Second Annual Direct-to-Consumer Spirits Shipping Report Shows 87% of Consumers Want to Purchase Craft Spirits via DtC Shipping

Report shows craft spirits drinkers want options to purchase and ship their favorite products now more than ever ATLANTA, OCTOBER 24, 2023 – Today’s release of the 2023 Direct-to-Consumer Spirits Shipping Report from global tax compliance technology leader Sovos and the American Craft Spirits Association underscores a continued increase in the percentage of regular craft […]

Read more