The IRS is cracking down on backup withholding. A focused audit program is being created to analyze information reporting inconsistencies and mismatches, and contact filers when discrepancies are found on Form 945 and/or Forms 1099.

What does this mean? Should your organization be concerned? What steps should you take to ensure your withholding process is correct?

Join us for Backup Withholding 101, to learn all this and more. This 3-part video series will cover:

Register now to reserve your seat – the series begins via email on September 23!

Join us in San Antonio for the 2019 Intelligent Reporting

As part of the Sovos Global Compliance Series (GCS), the Intelligent Reporting Summit returns October 28-30 to yet again bring together top tax professionals for 3 days of networking, industry knowledge, and regulatory updates. Our goal is to provide the information and resources you need to stay in compliance with constantly changing regulatory requirements.

We invite you to register NOW and enjoy the early-bird price of $805.00

 

Extended offerings will help solve toughest tax and regulatory compliance challenges for insurers, financial institutions and corporations

BOSTON (PRWEB) MAY 29, 2019

Global tax software provider Sovos today announced it will acquire Eagle Technology Management (ETM), which provides statutory financial reporting and insurance premium tax software to insurers, and unclaimed property reporting solutions and services to financial institutions, corporations and insurers in the United States. ETM’s technology will further strengthen Sovos offerings to help customers solve some of their greatest compliance challenges, including high-volume statutory reporting filings and diverse state requirements for unclaimed property reporting – an increasingly significant source of revenue for states and therefore a popular audit target for states.

ETM customers include more than 1,500 insurance companies in the U.S., and it is a leading provider in each of its core markets. The company’s statutory reporting product has become the de facto standard for the complex reporting burden U.S. insurance companies face on an ongoing basis. Additionally, nearly 5,000 customers have adopted ETM’s unclaimed property platform in just a few years, as businesses in the United States are subject to unclaimed property audits by 53 reporting jurisdictions. While the ETM solutions expand Sovos’ software coverage to meet additional customer needs, Sovos’ tax information reporting solutions will help ETM’s insurance, financial institution and corporate customers Solve Tax for Good™.

“ETM has a history of innovation in the insurance space, and its management team helped create the core markets the company now leads,” said Andy Hovancik, CEO, Sovos. “ETM’s technology and its passionate staff extend our ability to help customers manage more of their critical tax and regulatory demands, safeguarding their businesses from burden and risk.”

ETM has long been a first-mover, bringing data transformation technology to insurers and other industries. The company launched its Wings platform for integrated financial and regulatory reporting in 2003, followed several years later by the launch of its pure-play cloud computing portfolio of unclaimed property reporting products. UPExchange and UPExpress launched with the exclusive endorsement of the National Association of Unclaimed Property Administrators, and ETM’s proprietary online reporting network now connects businesses to state treasuries in 36 states, and growing.

“With this acquisition, ETM joins a company known for its expertise in translating tax compliance and reporting into high-performance software, which will benefit the customers we have long served,” said Layton Olson, CEO of Eagle Technology Management. “Sovos is the largest private filer of the 10-Series IRS forms so important in the insurance and financial markets we serve, and it has the trust of thousands of customers, including more than half the Fortune 500.”

Paul Banker, vice president and general manager of the Tax Information Reporting line of business at Sovos, said, “ETM adds to our breadth of technology and services solutions in areas our customers have requested, including statutory reporting and unclaimed property compliance, as well as insurance premium tax in the U.S. Our two companies complement each other, and together, we serve many of the largest U.S. insurance companies and financial institutions.”

The terms of the deal were not disclosed. Sovos is owned by Hg, the London-based specialist private equity investor focused on software and service businesses. EY served as financial advisor to Sovos, and Morris, Manning & Martin provided legal counsel. Shuttleworth & Ingersoll provided legal counsel to ETM.

“Sovos and ETM are built to lead the U.S. for high-volume, complex regulatory reporting to the clients we serve in the insurance and financial services markets, and we look forward to bringing this advantage to the broader industry,” said John Gledhill, vice president of corporate development for Sovos.

About Sovos 
Sovos is a leading global provider of software that safeguards businesses from the burden and risk of modern tax. As governments and businesses go digital, businesses face increased risks, costs and complexity. The Sovos Intelligent Compliance Cloud is the first complete solution for modern tax, giving businesses a global solution for tax determination, e-invoicing compliance and tax reporting. Sovos supports 5,000 customers, including half of the Fortune 500, and integrates with a wide variety of business applications. The company has offices throughout North America, Latin America and Europe. Sovos is owned by London-based Hg. For more information visit http://www.sovos.com and follow us on LinkedIn and Twitter.

About Eagle Technology Management 
Founded in 2001, Eagle Technology Management (ETM) is the leading provider of software automating the administration and filing of financial information to meet numerous regulated reporting requirements. ETM developed a SaaS application for statutory financial reporting and has pioneered the development of electronic filing specifications and electronic payment to state regulatory departments. In 2009, ETM began providing unclaimed property reporting solutions and services. In 2017, the company became SOC 2 type 2 certified for software products and has served nearly 50,000 companies. For more information, visit http://www.byetm.com.

Paxos Chooses Sovos for High-Volume Tax Reporting Share Article

Crypto-asset platforms and exchanges move to solve tax challenges ahead of IRS regulation

BOSTON (PRWEB) MAY 08, 2019

Global tax software leader Sovos today announced that Paxos, America’s first regulated crypto-asset platform, has chosen Sovos for its tax information reporting needs. Sovos’ Tax Information Reporting Solution will automate Paxos’ 1099-B forms and filings, eliminating errors and delivering automatic regulatory updates in this constantly changing arena. While crypto platforms wait for more clarity from the IRS around reporting guidelines, platforms like Paxos are proactively investing in solutions that will enable them to stay compliant in advance of forthcoming regulatory waves.

“The high volume and complexity of 1099 crypto reporting require sophistication. That’s why we turned to Sovos,” said Andrew Chang, chief operating officer, Paxos. “Now, we can more easily ensure that we and our clients are compliant and prepared for the inevitable changes to come.”

IRS regulations taking shape 
To date, the IRS has issued Notice 2014-21, which indicates Form 1099 reporting is required for certain virtual currency transactions. However, the guidance leaves a lot of questions unanswered. In November, IRS Commissioner Charles Rettig indicated the industry should, “pay attention to informal guidance as though it’s formal guidance.” He also promised, “the IRS will have more information about [crypto] than you could ever imagine.”

However, murky cryptocurrency regulations haven’t stopped the IRS from starting to enforce 1099 reporting regulations for crypto. In addition, the Securities and Exchange Commission has offered recommendations to investors to only trade on platforms that have registered as national security exchanges, a move that has added further pressure to report transactions to the IRS.

“The alternative currency market is focused on growing up in order to avoid the staggering volatility the market saw last fall,” said Paul Banker, general manager of tax information reporting at Sovos. “This era of maturity will undoubtedly be spurred by additional IRS regulations; therefore, intelligent tax information reporting is now critical to trading platforms’ future success.”

To read more about the latest in cryptocurrency tax reporting, visit sovos.com.

About Sovos 
Sovos is a leading global provider of software that safeguards businesses from the burden and risk of modern tax. As governments and businesses go digital, businesses face increased risks, costs and complexity. The Sovos Intelligent Compliance Cloud combines world-class regulatory analysis with its secure, scalable and reliable S1 cloud software platform to create a global solution for tax determination, e-invoicing compliance and tax reporting. Sovos supports 4,500 customers, including half of the Fortune 500, and integrates with a wide variety of business applications. Headquartered in Boston, Sovos has offices throughout North America, Latin America and Europe. Sovos is owned by London-based Hg. For more information visit http://www.sovos.com and follow us on LinkedIn and Twitter.

About Paxos 
Paxos is a regulated financial institution on a mission to create a global, frictionless economy. By building infrastructure to enable the movement between physical and digital assets, Paxos is creating a future where all assets—from money to commodities to securities—are digitized and can move instantaneously, 24/7.

Today, as the first regulated Trust company for digital assets, Paxos technology makes it possible to trade, escrow and custody assets with confidence. Our institutional-grade stablecoin, Paxos Standard (PAX), is the world’s most popular alternative stablecoin, and our digital asset exchange, itBit, is one of the leading Bitcoin trading platforms.

With offices in New York, London and Singapore, Paxos takes a global view of modernizing the financial system. Learn more at http://www.paxos.com.

Already regarded as the best 1099 reporting tool on the market, the recently upgraded Sovos Tax Information Reporting signed 150 new corporate and financial institution clients in just three months

Sovos’ new TIR solution is the only product able to perform real-time taxpayer identification number (TIN) checks and offers a simplified data import, consolidating information from multiple systems.

SAN DIEGO (PRWEB) MARCH 12, 2019

SAP CONCUR FUSION – Global tax software leader Sovos today announced that its new tax information reporting (TIR) solution, which debuted October 2018, gained more than 150 clients prior to the January tax season commencement. Sovos, the largest private 10-series filer in the United States, enhanced its TIR solution to make it more intuitive and integrate it with other technologies to solve a wider array of tax challenges.

Sovos’ new TIR solution is the only product able to perform real-time taxpayer identification number (TIN) checks and offers a simplified data import, consolidating information from multiple systems. Controllers and accounts payable (AP) managers can now use Sovos to solve a number of tax challenges, including conducting 1099 reporting for contractors and lease payments, identifying use tax obligations, validating tax on vendor invoices, and streamlining federal and state reporting.

The escalating pace and burden of TIR 
“Tax information reporting has accelerated over the past five years, and as a result, AP leaders have had to work harder and faster in the month of January,” said Paul Banker, general manager at Sovos. “We recognized their desire for easy-to-use 1099 software that navigates them through all reporting requirements in a tight time frame. The rapid adoption of our updated TIR product illustrates the pain point in the market and the need for this solution.”

The 2015 PATH Act expedited federal due dates for W-2 and 1099-MISC with nonemployee compensation from March 31st to January 31st because the IRS wanted to reconcile more real-time information with individual tax returns before issuing refunds. States quickly followed this trend by advancing traditional February and March state reporting to January. In fact, 87 percent of state reporting now occurs in January, versus three years prior, when only 22 percent of state reporting occurred in January.

“As federal and state governments go digital and move toward real-time tax systems, AP professionals are facing constant form changes and exponential penalty increases, requiring them to invest more time and money into reporting than ever before,” Banker continued. “As deadlines tighten and regulations evolve, Sovos is committed to continually enhancing our TIR solution so AP leaders can solve tax information reporting for good.”

Learn more about the future of TIR by visiting https://sovos.com/product/1099-reporting/ and at Booth #126 this week at SAP Concur Fusion in San Diego.

About Sovos 
Sovos is a leading global provider of software that safeguards businesses from the burden and risk of modern tax. As governments and businesses go digital, businesses face increased risks, costs and complexity. The Sovos Intelligent Compliance Cloud is the first complete solution for modern tax, giving businesses a global solution for tax determination, e-invoicing compliance and tax reporting. Sovos supports 5,000 customers, including half of the Fortune 500, and integrates with a wide variety of business applications. The company has offices throughout North America, Latin America and Europe. Sovos is owned by London-based Hg. For more information visit http://www.sovos.com and follow us on LinkedIn and Twitter.

Tax Information Reporting: A Year-Round Process

When does tax information reporting season end? At the end of January? Maybe in March? When 1099 forms are finally gone?

For organizations that do it right, there is no “season.” Reporting is a year-round process that emphasizes efficiency over panic and minimizes risk. Check out the year-round reporting schedule in this infographic.

The Sovos Tax Information Reporting Solution

Sovos U.S. Tax Information Reporting is a centralized solution that serves as your compliance headquarters. It handles the complete compliance process of millions of forms. It proactively validates your data accuracy. It reacts to IRS changes almost instantaneously. It doesn’t even require installation or updates from your IT team. Most important of all, Sovos is the most secure compliance solution on the planet.

Sovos S1: Delivering Modern Tax Software

The Sovos Intelligent Compliance Cloud sits on a unique cloud software platform that is built to bring previously disparate tax solutions and data together for use wherever your business operates—through a single platform.

The S1 architecture allows Sovos to do the hard work for you, adapting to changes in technology requirements and government regulations – and giving you access to the tools and data you need to run your business anywhere in the world through a consumer-grade user experience.

Datasheet

Sovos TIR for Netsuite

With the growing complexity of the 1099 reporting space NetSuite has decided to trust independent software vendors, such as Sovos, to support organizations throughout the 1099 reporting process. As of NetSuite version 18.2, NetSuite will discontinue supporting 1099 reporting functionality. Sovos has created a bundle within NetSuite that offers 1099 reporting capabilities. NetSuite will continue to track 1099 vendor information as it has in the past.

Manage FATCA & CRS obligations with ease

Operating in a global economy means complying with AEOI agreements. Sovos Tax Information Reporting – AEOI streamlines AEOI reporting in more than 100 countries.

Save time and money by streamlining AEOI reporting in more than 100 countries.

In an unparalleled display of transparency and cooperation, governments around the world are signing agreements to automatically exchange financial information reported by key businesses – particularly financial institutions. The goal: curb tax fraud and maximize tax revenues.

The Automatic Exchange of Information (AEOI) agreements include:

  • The Foreign Account Tax Compliance Act (FATCA)
  • Common Reporting Standard (CRS)

Agile, centralized, tailored solution

Little to no IT involvement

Adapts to your source systems and processing requirements

Flexible deployment options, including SaaS, on-premise and hybrid

Accurate and accessible data management interface

Connect data from multiple systems with flexibility in importing, mapping and reporting

Necessary data in virtually any format is quickly validated and transformed into compliant AEOI reporting

Automatic data correction prior to reporting

Automatic alerts on changing account statuses ensure you follow appropriate jurisdictional rules

Updated and accurate compliance for every jurisdiction

Automatic updates of new rule changes, no matter how frequent

Easily validate jurisdictional requirements and track reporting deadlines throughout the year

The highest security standards and bulletproof audit response

Dictate user access and administrative privileges

Create an airtight audit trail

Easily monitor and demonstrate compliance

Guarantee security with dual secure backups, third-party penetration testing and biometrically guarded data centers with cutting-edge data-at-rest encryption

“The main benefit of the Sovos tool is that it’s designed to take the data in any form, so it does not map the data to the tool; the tool maps to the data. This saves time and makes everything easier.”

Stuart Sardo

FATCA and CRS manager, ZEDRA

Put Affordable Care Act Reporting on Autopilot

Don’t burn hours on ACA compliance. Simplify the compliance process with Sovos Tax Information Reporting – ACA.

Failure to track and report sensitive data on time and accurately can result in stiff penalties.

ACA requirements have presented a whole new set of tax reporting obligations for health insurers and companies with 50 or more full-time employees. In a survey of 100 business leaders, more than half told Sovos they spend more than 500 hours per year on ACA compliance. What’s worse – they spent more than half of those hours addressing errors.

Save time and money on ACA compliance

Agile, low-upkeep solution

Little to no IT involvement

Scalable SaaS technology requires no installation

Automatically adapts to any last-minute regulatory updates or additions, so your business remains compliant

Flexible data management and validation

Upload data from any flat file (like Excel, CSV, Text, etc.) and simply map it to correct fields.

Eliminate the need for mapping similar data in future uploads.

Quickly and easily identify incomplete and missing data for improving accuracy before transmitting to the IRS.

One-click submissions and corrections

Once data is validated, simply click, and the printing and mailing of every form is handled, along with securely transmitting to the IRS.

Reprint or update current and prior year forms while tracking changes.

Electronically submit and transmit the revised information to the IRS with the click of a button.

Flexible data management and validation

Dual secure backups, third-party penetration testing, biometrically guarded data center, and data-at-rest encryption

Customizable reports to monitor and produce audit trails

On-demand access to all tax information and forms for current and prior years

Customers / Partners

New Mexico has revised its Form RPD-41374, Annual Report of Non-Resident Remittees Holding an Agreement to Pay Tax on Oil and Gas Proceeds, which is used to report the distribution of oil and gas proceeds to each nonresident remittee who entered into an agreement to pay the tax on oil and gas proceeds. This form is due annually to the department by February 28.

The only revision to the form is to the bar code. Neither the form layout nor instructions have changed.

Massachusetts has released the individual mandate penalties for tax year 2019. Adults deemed able to afford health insurance, but fail to maintain health insurance coverage for any part of the year, may be subject to these penalties. Coverage must meet minimum creditable coverage standards established by the Health Connector. The penalties, which will be imposed through the individual’s personal income tax return, shall not exceed 50% of the minimum monthly insurance premium for which an individual would have qualified through the Health Connector.

Despite the repeal of the federal individual mandate, Massachusetts maintains its state individual mandate law.

Ohio has published the due dates for Monthly, Quarterly, and Partial Weekly filers/payers in 2019. These dates apply to Forms IT-501 and SD-101. Partial weekly filers must submit a Quarterly Reconciliation on Form IT-942 and all filers must submit an annual reconciliation on Form IT-3. Monthly and Quarterly filers additionally submit annual returns on Forms IT-941 and SD-141.

The due dates and payment/filing cycles have not changed – except to adjust for weekends and holidays.

The Colorado Department of Revenue recently published an updated version of FYI General 11: Colorado Civil Tax Penalties and Interest. This publication is a part of the FYI series that Colorado publishes, and provides information on civil tax penalties and interest rates for tax underpayments.

There is only one update in the most recent version of this publication, which is as follows:

To review this publication in its entirety, please click here.

The Iowa Department of Revenue announced today that due to technical difficulties with a segment of taxpayers attempting to file W-2 and 1099 reports electronically through the Iowa eFile & Pay system, the electronic filing deadline for these forms will be extended until February 28, 2019.

Please note that all other functions of the eFile & Pay system are currently experiencing no issues.

To review this announcement in full, please visit the Iowa Department of Revenue website by clicking here.

The Wisconsin Department of Revenue announced today that it will be extending the deadline for W-2 and 1099 filing automatically from January 31, 2019 to Monday, February 4, 2019. The Department notes that extreme weather conditions leading to business closings and delays with the US Postal Service are factors in this decision to extend the filing deadline.

To review this announcement in full, please visit the Wisconsin Department of Revenue website by clicking here.

The South Carolina Department of Revenue recently released an updated version of Form WH-1612, Transmittal Form for W-2s or 1099s Submitted by CD-ROM or Paper. This form must be filled out by each filer submitting magnetic media or paper versions of Forms W-2 or 1099s, as it provides a summary of certain information including South Carolina state income tax withheld.

The only change to the most recent version of this form is the addition of a supplemental zip code to the Overnight CD ROM Delivery Address on the second page. The new zip code is now 29210-5666.

To review this form in its entirety, please click here.

The California Employment Development Department (EDD) recently published an updated version of Form DE-4P, Withholding Certificate for Pension or Annuity Payments. This form is used to provide the EDD with information relating to the withholding of pension and annuity payments for individuals.

There are only a few minor changes to the form, which include the following:

To review this form in its entirety, please click here.

The California Employment Development Department (EDD) recently published an updated version of Form DE-4, Employee’s Withholding Allowance Certificate. This form is used to provide employee withholding information for California income tax purposes.

The only changes to the most recent version of this form were made in the dollar amounts listed in two sections:

To review this form in its entirety, please click here.