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Organizations reporting tax information to Vermont might have been surprised to find that the state is no longer part of the Combined Federal/State Filing (CF/SF) program for form 1099. Previously, organizations could report 1099 information to the IRS, and the IRS would send that information directly to the department of revenue in Vermont. The reporting […]

The 1099-K reporting threshold changes enacted in Massachusetts and Vermont have started to have repercussions for states, online businesses and companies doing tax reporting. In conflict with IRS requirements, Massachusetts and Vermont changed the threshold for reporting 1099-K transactions from $20,000 and 200 transactions to just $600 with no minimum number of transactions. These transactions […]

On Jan. 20, the federal government shut down right in the middle of tax reporting season. The brief shutdown, likely to be resolved by Jan. 23, offered some insight into what happens when the IRS loses funding during reporting season. While the latest shutdown will likely be short, another could loom, as the proposed funding […]

The newly implemented Tax Cuts and Jobs Act, better known as the new tax law, dropped the backup withholding rate for payments reported on form 1099 from 28 percent to 24 percent effective Jan. 1, although many organizations might not have noticed. The IRS announced the withholding adjustment in Notice 1036 in early January. The […]

One box on IRS form 1098 has the potential to cause confusion for organizations this tax filing season, demonstrating how frustrating staying compliant with 10-series reporting requirements can be. The Mortgage Insurance Premium (MIP) deduction allows taxpayers to deduct mortgage insurance they paid in a given year. However, Congress has not yet passed a provision […]

The end of 2017 brought a flurry of activity around the ACA, some of which generated confusion. Despite statements to the contrary, the ACA is still the law of the land, and employers are still required to report ACA information to the IRS or face financial penalties. Here is an update on the state of […]

As expected, the combined tax bill that recently passed both the House and Senate does not eliminate the employer mandate to provide health insurance, nor does it change Affordable Care Act reporting requirements for eligible organizations. President Trump is likely to sign this version of the bill into law. It does eliminate the individual mandate […]

The tax reform bill that just passed the Senate does not eliminate the employer mandate to provide health insurance, nor does it change Affordable Care Act reporting requirements for eligible organizations. The bill does eliminate the individual mandate to purchase health insurance, meaning individuals who choose not to buy insurance will no longer be subject […]

Massachusetts has become the first state to take action toward collecting tax money lost in the sharing economy. The commonwealth recently lowered the threshold for reporting income on the 1099-K to a level far below federal requirements. Sharing-economy companies that are third-party settlement organizations (TPSOs) use form 1099-K to report payments to non-employee service providers. […]

The PATH Act is back for a sequel to last season’s confusion over compliance requirements, and this time, states have joined the show. For the upcoming 1099 tax season, it’s more important than ever for organizations to keep up with new deadlines and other potential surprises. As part of the provisions of the PATH Act, […]

The Affordable Care Act (ACA) survived an onslaught of resistance and repeal attempts last summer, and ACA reporting for tax year 2017 reporting is definitely happening. This year, unlike in years past, extended filing deadlines are unlikely and financial penalties are very real. For filers, both the complexity and the risk of ACA filings are […]

Changes to tax compliance requirements and legislation happen frequently at the state and IRS levels.  In order to provide customers with the updated and accurate information they need, Sovos documents each of these changes in its Compass portal. Here are some notable changes in 1099 reporting from this week. South Carolina Publishes 2017 Instructions & […]

IRS Publication 1220 contained a potentially nasty little surprise for 1099-MISC filers. The trouble centers on Box 7, the area of the form where filers signify non-employee compensation. For tax year 2016, forms with information in Box 7 are due Jan. 31, 2018, although the IRS will extend the deadline to March 2 upon request. […]

Two trends have converged to create a nightmare for tax information reporting. First, the sharing economy has redefined work and taxation of wages. Second, the IRS has decided that it needs to bridge the gap between revenues and taxes paid—a divide that the sharing economy has only made wider. The result is a nightmare scenario […]

Changes to global FATCA and CRS compliance requirements happen frequently.  In order to provide customers with the updated and accurate information they need, Sovos documents each of these changes in its Compass portal. Here are some notable recent developments in AEOI reporting. Singapore Releases Updated CRS FAQ Singapore has updated its CRS FAQ.  The updated […]

The Common Reporting Standard (CRS) is fast becoming the global standard for tax information reporting outside the United States. As more countries adopt CRS, and as penalties for late, incorrect or missed CRS filings become more severe, financial institutions need to know what their compliance requirements are. Following are clarification and detail about what insurers […]

Our October 24 Webinar, “Building the Tax Team of the Future to Successfully Navigate the Regulatory Storm,” is now available onDemand. During the webinar, we asked attendees a series of four detailed polling questions to help them measure their tax teams’ ability to deal with regulatory and business change. Questions were based on a Reactive-to-Proactive […]

It’s clear business evolution, technology disruption and related tax compliance laws are creating increased complexity and becoming tremendous business liabilities. In today’s regulatory environment, businesses must view tax compliance as a critical function, committing the right resources, technology and process discipline necessary to maintain compliance and respond to the associated audits so the business can […]