January 31st, 2012 by Tristan Pollock
When it comes to 1099 reporting, the future is uncertain. That was the underlying theme in the latest Accounting Today article, “IRS Increases 1099 Expectations,” featuring a plethora of quotes from Convey’s Executive Vice President, Troy Thibodeau.
To start, new 1099-K and 1099-B requirements have pushed the IRS to update their projections from just two years ago. New IRS forecasts state they are due to receive approximately 2.855 billion information reports in 2012, an addition of nearly 700 million more forms than previously predicted in 2010.
The depth of the constant fluctuation in reporting requirements goes deeper than just the 1099-K and 1099-B forms.
“[...] the last two to three years has seen a significant increase in the amount of third-party reporting that’s taking place,” explains Thibodeau in the article.
His reasoning? The United States Congress has passed, and afterwards repealed, two recent pieces of 1099 information reporting legislation within the last two years, and there’s more to come. Currently, additional legislation is proposing expanded 1099 reporting on all types of interest income. At the same time, “B” Notice fines for incorrect taxpayer data are increasing.
For all these reasons, Convey maintains a finger on the pulse of the tax reporting industry and incorporates the evermore changing landscape into our Web-based software to make things easier for you.
Want to know more? Our upcoming webinar “Ensuring Accurate Taxpayer Information” will address the current best practices surrounding proactive TIN and legal-name remediation. Plus, you can read the entire Accounting Today article here.
Convey provides tax information reporting services and software to businesses to make IRS compliance clear and uncomplicated. U.S. federal tax advice contained in this web site is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code or (ii) promoting, marketing or recommending to another party any transaction or matter that is contained in this document. (iii) The taxpayer should seek advice based on the taxpayer’s particular circumstances from an independent tax advisor.