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Information Reporting and Withholding Suite
Compliant 1099 Reporting Software

Compliant 1099 Reporting Software

Description
Reduce operating costs and ensure compliance with Sovos Tax Information Reporting.
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Tax information reporting software

Ensuring 1099 Reporting Compliance

As your requirements for 1099 reporting become more complex, your company has to spend more time and resources to meet the challenge of staying compliant.
Regulatory changes are constant, and business events such as mergers and acquisitions, growth, geographical expansion and new products create complexity and increase the strain on your tax, finance, AP, IT and compliance departments.

Sovos Tax Information Reporting keeps up with regulatory changes, so your employees can spend their time on something other than 1099 reporting.

Improve operational efficiencyAutomate and centralize manual processes, reducing operating costs.Mitigate riskEliminate processes that are prone to errors and prompt audits and penalties.Enhance customer experienceEnable a single point of access for all customers, resulting in reduced call volumes.
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Data scalability and flexibility & Data validations
Sovos centralizes multiple data sources into a single database and supports a wide range of data formats, allowing organizations to streamline recipient statement delivery and grow without IT or compliance restrictions.
Print/mail & Solicitation printing and mailing
Print and mail forms or solicitations (such as IRS CP2100 or 972CG notices) with a single click, leveraging negotiated print rates, National Change of Address checks, TIN masking, and correct forms to gather updated payee information securely.
Withholding
Effortlessly track remittances, reconciliation and state withholding reporting responsibilities and never have to track payments manually or match general ledger data line-by-line against transaction-level data thanks to our 1099 reporting software.
Data validations
Sovos validates recipient information, including mailing addresses and IRS specific rules upon import for data completeness and correctness.
E-statements
Deliver forms to customers and vendors through electronic statement delivery, reducing costs associated with printing and mailing while providing a secure way to deliver tax information to payees with the ability to view updated tax forms real-time.
1099 tracking
Our 1099 compliance software enables your company to stay on top of crucial 1099 reporting dates as well as any filings that have been made.
Response handling
Manage all solicitation responses in one location through uploading and updating records with correct information to know which payees are subject to backup withholding and to maintain compliant audit records.
Agile product development
Sovos quickly and efficiently implements changes within solutions in response to last-minute regulatory changes.
Digital asset reporting
Utilize the only modern cloud-based reporting solution built for performance, reliability, and security in high-volume exchanges, lenders, and custodians. Learn more about our digital asset solution.
Real-time TIN matching
Sovos validates vendor and customer information against IRS and other key databases to enable you to avoid reporting errors and potential penalties
Achieve new efficiencies in 1099 reporting and protect yourself from risk.

“I believe being with Sovos has allowed my department to take on additional business without adding employees.”

Shannon Morris

Senior Tax Analyst, Nationwide Financial

Frequently Asked Questions

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What is tax information reporting?

Tax information reporting involves the reporting of both wage and non-wage payments made by businesses to individuals, including employees, contractors, and other recipients. Businesses are required to report these payments to the IRS and any states they have obligations in on an annual basis using applicable forms such as Form series 1099 (1099-K, 1099-MISC, 1099-NEC, etc,), W-2, 1042-S, and more. Learn more here.

How do I know my direct state reporting obligations?

An organization's direct state reporting obligations can come from where the business is located, where the work was performed, and/or where the recipient resides.

It is important to note that state reporting requirements vary by state. Each state has the ability to create unique reporting obligations for each 1099 series forms including different thresholds, due dates, and reporting method.

Do businesses need to electronically file 1099 forms?

As stated in TD 9972, for tax year 2023 returns and beyond, businesses are required to electronically file information returns following a threshold of 10+ returns, counted in the aggregate. This includes form series 1099s, W-2s, 1042-S, ACA forms and more.

What are the penalties associated with failing to file or filing 1099 forms late?

The IRS annual reporting penalties for late or inaccurate filings can reach up to $310 per return with a maximum penalty of over $3.7M. If a business intentionally disregards their reporting obligations, they can be charged up to $630 per form. In addition, businesses also face the threat of IRS audits and additional penalties from state governments.
See how our solutions scale with your global compliance needs.
Request My Demo

Achieve new efficiencies in 1099 reporting and protect yourself from risk.

Data scalability and flexibility

Sovos Tax Information Reporting accepts a wide range of data formats, allowing organizations to change and grow without IT or compliance restrictions.

Withholding

Effortlessly track remittances, reconciliation and state withholding reporting responsibilities and never have to track payments manually or match general ledger data line-by-line against transaction-level data thanks to our 1099 reporting software.

E-statements

Deliver forms to customers and vendors through electronic statement delivery, reducing costs associated with printing and mailing while providing a secure way to deliver tax information to payees with the ability to view updated tax forms real-time.

1099 tracking

Our 1099 compliance software enables your company to stay on top of crucial 1099 reporting dates as well as any filings that have been made.

Response handling

Manage all solicitation responses in one location through uploading and updating records with correct information to know which payees are subject to backup withholding and to maintain compliant audit records.

Digital asset reporting

Utilize the only modern cloud-based reporting solution built for performance, reliability, and security in high-volume exchanges, lenders, and custodians. Learn more about our digital asset solution.

Data validations

Sovos validates recipient information, including mailing addresses and IRS specific rules upon import for data completeness and correctness.

Data centralization

Centralizing data enables you to funnel multiple data sources into a single database for seamless recipient statement delivery and government tax information reporting.

Print/mail

Print and mail forms with a click of a button while taking advantage of negotiated print rates, National Change of Address check, and increased security with TIN masking.

Solicitation printing and mailing

Print and mail solicitations to payees appearing on IRS CP2100 or 972CG notices using the correct form of solicitation to receive updated and verified correct name and TIN information.

Agile product development

Sovos quickly and efficiently implements changes within solutions in response to last-minute regulatory changes.

Real-time TIN matching

Sovos validates vendor and customer information against IRS and other key databases to enable you to avoid reporting errors and potential penalties