Convey Featured in Star Tribune Tax Gap Article
January 17th, 2012 by Stephanie Erickson
In an article featured in the Star Tribune, Neal St. Anthony writes further about the tax gap, the IRS’ continuing efforts to close it, and Convey’s role in the current tax environment. From our previous blog post, we all know the tax gap number has increased, nearing $450 billion according to 2006 data. Despite detrimental budget cuts, the IRS is trying to improve the tax gap by focusing its resources where the gap is greatest: the underreporting of income by corporations, individuals, and small businesses. Thus, Doug Shulman, Commissioner of the IRS, claims that better information reporting is the real way to combat the tax gap; Convey helps over 2,000 corporate clients to do so.
Our CEO, Brian Provost, says “The IRS is trying to chip away at that gap. There’s increased scrutiny, and the government wants to know about it any time money changes hands or there’s a gross proceed or gain on a security you bought and sold.” This is why, (along with budget cuts), the IRS has turned to more automation in information reporting, such as electronic tracking of payments that should be reported as income. Dudley Ryan, tax partner at Minneapolis-based CliftonLarsonAllen, says the increased requirements for income reporting are legitimate, but “it’s also just more paperwork for everybody” – another area in which Convey can help businesses improve their reporting process.
Executive vice president of Convey, Troy Thibodeau states, “The dense and evolving rules for tax information reporting can be a burden for companies. And the penalties for non-compliance can be considerable. Automated tax reporting solutions such as ours have made these reporting activities more achievable with fewer resources.” However, it’s currently estimated that only 20% of businesses have automated tax-information reporting. So if your businesses is feeling burdened by your 1099 forms, tax compliance regulations, or too much paperwork…don’t worry, Convey Compliance can help.
Tags: 1099, Compliance, IRS, Shulman, tax gap, TIN, Troy Thibodeau
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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.