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California’s Assembly Bill 5 (AB5) has sparked a national trend towards increased regulations on the gig economy. New York, New Jersey and Illinois have followed California’s lead, attempting to pass their own versions of AB5. What is AB5? Triggered by the landmark Dynamex ruling, California’s AB5 requires businesses that hire gig workers to treat those […]
In 2019, Sovos acquired Eagle Technology Management (ETM) for its history of innovation in statutory reporting and other key compliance solutions for U.S.-based insurance companies. Today, Sovos announced the acquisition of Booke, which provides critically important educational seminars to employees of American insurance companies and the Internal Revenue Service (IRS) on topics across property, casualty, […]
Experts believe Starbucks plans to enter the financial services industry. This belief is based on the huge sum of money Starbucks holds in stored value card liabilities and Starbucks’ investments in crypto. It also removed the word coffee from its signboard. Billions in value card liabilities Starbucks customers generate a massive amount of money purchasing […]
The IRS commissioner Chuck Rettig issued the agency’s FY19 updates last month, which included updates on compliance and education initiatives aimed at the emerging gig and crypto industries. Publication 5382 was released in December to provide taxpayers with updates on the IRS’ FY19 goals. Of the six goals discussed in the report, goal two promised […]
Tax time is upon us, which means last minute IRS and state tax information reporting changes are keeping us on our toes. Take five minutes to learn what these changes are and what you need to do to protect your business from penalties. 1. California’s last-minute change On December 9th, the Franchise Tax Board posted […]
Historically, the IRS required 1099 filers of 250 or more forms to file electronically (e-file). For businesses filing fewer than 250 forms, the IRS allowed paper filings. However, the 1099 reporting process will soon be almost completely electronic. The state of Oregon made a similar change in 2018, and the trend is about to go […]
Despite what you may have heard, the Affordable Care Act (ACA) tax reporting requirements are not dead. In fact, enforcement of the Employer Shared Responsibility Provisions (ESRPs) under IRC 4980H is very much alive at the federal level. And states are enforcing the individual mandate. Federal Enforcement of ESRPs Many employers and other filers of […]
For the first time in state history, the Illinois state legislature has enacted form 1099-K reporting requirements as part of the FY20 Budget Implementation Act. This change is a new direct state reporting requirement for payers of income made to Illinois residents. For 2019 reporting, Illinois requires form 1099-K reporting to be submitted to them […]
A recent fact sheet released by the IRS shows the latest tax gap estimates and overall taxpayer compliance, and demonstrates why the IRS is likely to strengthen its tax reporting enforcement policies. The findings are based on data from tax years 2011, 2012 and 2013. The purpose of this document is to let the public […]
Gemini, one of the world’s most trusted cryptocurrency exchanges and custodians, has selected Sovos, the largest private filer of 10-series tax forms, to automate Gemini’s 1099 forms and filings. Sovos will enable Gemini to eliminate potential errors and get automatic regulatory updates on the ever-changing cryptocurrency compliance landscape. The growing confusion related to crypto tax […]
Introduction Tax information reporting and withholding at the state level is often a complex undertaking for organizations to manage. With 43 states now requiring income tax withholding and reporting, and each state having its own specific requirements, compliance can be a logistical nightmare. To add to the mounting complexities of state reporting, organizations need to […]
Ron Quaranta is founder and chairman of Wall Street Blockchain Alliance, the world’s leading non-profit trade association promoting the comprehensive adoption of blockchain technology and crypto assets across global financial markets. He will speak at the GCS Intelligent Reporting conference in San Antonio later this month. Ron spoke with Sovos recently about cryptocurrency tax regulations […]
The IRS released long-awaited guidance on cryptocurrency tax regulations this week, but the agency did little to clarify tax reporting policy. The guidance, the first update to IRS cryptocurrency policy in five years, is aimed at individual taxpayers and tax practitioners who prepare returns for taxpayers. The new information addresses information IRS Commissioner Charles Rettig […]
The issue of online unclaimed property reporting is an important one. State legislation varies widely on when and how to submit unclaimed property reports, and many states now require that holders use an online reporting system in order to remain compliant. As you consider your options, it is important that your online reporting system is reliable and secure. So […]
Michael Chittenden and Michael Lloyd, or Mike & Mike, specialize in helping companies deal with all sorts of tax issues, including tax reporting. They will speak at GCS Intelligent Reporting in San Antonio about seeking abatement of IRS penalties. Sovos sat down with both to discuss why companies should generally challenge IRS tax reporting penalties. […]
Many organizations are choosing to say “so-long” to manual withholding processes to gain operational efficiencies allowing finance and accounting teams to focus on business critical tasks rather than repetitive tasks with limited value-add to the organization. In addition, eliminating manual withholding processes can mitigate process, compliance and security risk associated with managing multiple spreadsheets used […]
Caroline Bruckner is the managing director of the Kogod Tax Policy Center at the Kogod School of Business at American University in Washington, DC. She is actively-engaged in consulting with Congress on tax policy and in 2016 published the study Shortchanged: The Tax Compliance Challenges of Small Business Operators Driving the On-Demand Platform Economy. Sovos […]
The threshold for reporting income on Form 1099-K is increasingly proving to be too high for reducing the tax gap at both state and federal levels, and the problem will only get worse as the gig economy grows. Form 1099-K and California gig workers dominated discussion at the mid-September GCS conference in San Francisco. The […]