July 4th, 2012 by Troy Thibodeau
The world around us is always changing. Imagine New York City in 1776 with a population of just 22,000 people. Today the Big Apple holds around 8,244,910 residents and is one of only 21 designated megacities around the global. And just as New York City has evolved into an epicenter of activity in North America, so has our tax system.
The United States tax system is currently undergoing an incredible metamorphosis before our very eyes. Our tax system’s humble beginnings as a look-in-the-rearview-mirror process is now turning into a look-forward, real-time system more advanced than ever before, that is, if you have the right tools to stay up with the changing times.
Tools like Real-Time TIN verification — whether through existing processes or TIN Portals — are slowly making “B” Notices and “P” Notices things of the past. That’s a big deal when, according to the 2011 IAPP Tax and Regulatory Study, over 56.2 percent of businesses, large and small, deal with up to 50 “B” Notices every year and nearly 10 percent deal with 750 or more. In all actuality, there are those of us that deal with many thousands more. All of this tells me one thing: The paradigm needs to shift to proactive compliance.
Business tax operations groups and financial data voyagers are converting at a record pace. The tax industry is just too plain complicated. Being proactive around clean and accurate tax information data means staying up with the latest technology and it is fast becoming a compliance best practice.
The IRS has recognized it, too. Recent speeches by IRS Commissioner Douglas Shulman confirmed that they are pursuing a real-time tax system that is unlike anything ever attempted by the tax agency.
So, where does this leave you? On Thursday, July 19, Convey is hosting our second-ever New York Summit covering the trending compliance issues of FATCA, cost basis reporting and, you guessed it, making tax reporting a real-time endeavor. I hope you join us for this special event in the U.S. center of commerce (and tax reporting).
Tags: 1099, B-Notices, Compliance, cost-basis reporting, FATCA, IRS, new york city, new york summit, real-time, Real-Time Tax System, Shulman, tax reporting, TIN, troy
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