These penalty increases add another layer of taxpayer confusion to an ever-fluctuating landscape of regulatory changes and requirements.
Minneapolis, MN (PRWEB) August 12, 2015
On June 29, an update was passed to the Trade Preferences Extension Act. H.R. 1295 (now PL 114-27). This legislative change more than doubles the penalty per record from $100/record to $250/record for failure to file properly and also doubles the annual maximum penalty cap for unintentionally failing to file correct Information Returns from $1.5M to $3M for all 1099’s. These new penalties are effective for information returns required to be filed after Dec. 31, 2015. Employers must be ready for this tax season.
Additionally, this major penalty update encompasses the new 1094/1095 Health Care ACA forms, even though sections 6721 and 6722 of the IRS code traditionally relate only to 1099 & W-2 information returns. Sections 6055 and 6056 of the IRS code, which govern minimum essential healthcare coverage reporting requirements, refer back to 6721 and 6722 for penalty enforcement.
These penalty increases add another layer of taxpayer confusion to an ever-fluctuating landscape of regulatory changes and requirements. For most organizations, this will likely result in increased penalty exposure, greater operational complexity and higher risk for audits.
Due to continued significant demand, Sovos Compliance is pleased to offer an encore of the complimentary educational webinar Increased New Penalty Updates and Best Practices for B & P Notices on Wednesday, August 26 at 1:00 pm CT. This live session is designed to help businesses understand these changes and prepare for the substantial impact it will have on tax reporting for the 2015 Tax Year. This webinar is CPE eligible.
Sovos Compliance (formerly Convey Compliance) is the number one US filer of 10 series forms with over 310 million forms filed last year. For nearly 30 years, Sovos Compliance has been dedicated to developing and providing innovative technology solutions for tax information reporting processes. With over 4,000 clients, including nearly half of the Fortune 500, Sovos provides organizations the ability to focus on their business goals as opposed to spending valuable time, money and resources chasing the complexities of the IRS.
For more information, please visit: http://www.sovos.com/events