Governments globally are wrestling with the challenge of taxing the digital economy, with digital advertising emerging as a key target. As traditional revenue sources from physical businesses face decline, digital platforms like Google and Facebook \u2014 dominating the advertising market \u2014 are drawing scrutiny from policymakers.
\nA recent analysis from MIT Sloan highlights the growing consensus on the need for digital advertising taxes to address this disparity. Countries are exploring various models to capture revenue from tech giants that often operate with minimal local tax obligations despite the profits generated in their markets. This approach aims to level the playing field between digital and traditional businesses and ensure that tech companies contribute fairly to public finances.
\nThe report emphasizes the economic rationale behind taxing digital advertising. Digital ads not only influence consumer behavior but also represent a substantial portion of advertising spend. By taxing these transactions, governments can tap into a lucrative revenue stream that reflects the economic impact of digital platforms. The revenue generated from such taxes could be used to fund essential public services and infrastructure, potentially alleviating some of the financial burdens on traditional businesses and consumers.
\nImplementing digital advertising taxes presents challenges, the report notes. One primary issue is determining how to measure and allocate digital advertising revenues fairly, especially given the cross-border nature of many digital platforms. Accurately assessing where value is created and ensuring taxes are imposed accordingly requires intricate international cooperation and innovative tax policy. There is concern that poorly designed taxes could stifle innovation, deter investment, or distort competition in the digital marketplace.
\nCountries such as the U.K. and France have taken steps toward implementing digital advertising taxes, aiming to capture revenue from multinational tech giants. The U.K. introduced its Digital Services Tax\u00a0in April 2020, targeting large digital businesses with substantial revenues from U.K. users.
\nSimilarly, France\u2019s Digital Services Tax, enacted in 2019, focuses on taxing large tech firms based on their French revenues. These measures reflect a trend among nations to address the revenue challenges posed by the digital economy.
\nThe MIT Sloan analysis emphasizes that while implementing a tax on digital advertising is complex, it is a vital step toward ensuring the digital economy contributes its fair share to national revenues and public services. This initiative underscores the broader need to update tax systems to reflect the realities of a digital-first world. As digital advertising grows, the demand for effective and equitable tax measures is expected to increase.
\nThe discussion around digital advertising taxes also raises broader concerns about fairness and economic equity, according to the report. Traditional businesses have historically faced high tax burdens, while digital platforms, despite their market presence and profitability, have often enjoyed favorable tax treatments. Taxing digital advertising aims to rectify this disparity, ensuring that the economic impact of tech giants is more accurately represented in national tax revenues.
\nAlthough the implementation of digital advertising taxes involves challenges, the potential advantages make it a valuable pursuit. By tapping into the revenue generated by digital platforms, governments can help balance the financial scales between traditional and digital businesses, support essential public services, and foster a fairer tax system.\u00a0
\nThe post Governments Confront the Challenge of Taxing Digital Advertising appeared first on PYMNTS.com.
\n", "content_text": "Governments globally are wrestling with the challenge of taxing the digital economy, with digital advertising emerging as a key target. As traditional revenue sources from physical businesses face decline, digital platforms like Google and Facebook \u2014 dominating the advertising market \u2014 are drawing scrutiny from policymakers.\nA recent analysis from MIT Sloan highlights the growing consensus on the need for digital advertising taxes to address this disparity. Countries are exploring various models to capture revenue from tech giants that often operate with minimal local tax obligations despite the profits generated in their markets. This approach aims to level the playing field between digital and traditional businesses and ensure that tech companies contribute fairly to public finances.\nThe report emphasizes the economic rationale behind taxing digital advertising. Digital ads not only influence consumer behavior but also represent a substantial portion of advertising spend. By taxing these transactions, governments can tap into a lucrative revenue stream that reflects the economic impact of digital platforms. The revenue generated from such taxes could be used to fund essential public services and infrastructure, potentially alleviating some of the financial burdens on traditional businesses and consumers.\nImplementing digital advertising taxes presents challenges, the report notes. One primary issue is determining how to measure and allocate digital advertising revenues fairly, especially given the cross-border nature of many digital platforms. Accurately assessing where value is created and ensuring taxes are imposed accordingly requires intricate international cooperation and innovative tax policy. There is concern that poorly designed taxes could stifle innovation, deter investment, or distort competition in the digital marketplace.\nWhat Governments Are Doing\nCountries such as the U.K. and France have taken steps toward implementing digital advertising taxes, aiming to capture revenue from multinational tech giants. The U.K. introduced its Digital Services Tax\u00a0in April 2020, targeting large digital businesses with substantial revenues from U.K. users. \nSimilarly, France\u2019s Digital Services Tax, enacted in 2019, focuses on taxing large tech firms based on their French revenues. These measures reflect a trend among nations to address the revenue challenges posed by the digital economy.\nA Digital-First World\nThe MIT Sloan analysis emphasizes that while implementing a tax on digital advertising is complex, it is a vital step toward ensuring the digital economy contributes its fair share to national revenues and public services. This initiative underscores the broader need to update tax systems to reflect the realities of a digital-first world. As digital advertising grows, the demand for effective and equitable tax measures is expected to increase.\nThe discussion around digital advertising taxes also raises broader concerns about fairness and economic equity, according to the report. Traditional businesses have historically faced high tax burdens, while digital platforms, despite their market presence and profitability, have often enjoyed favorable tax treatments. Taxing digital advertising aims to rectify this disparity, ensuring that the economic impact of tech giants is more accurately represented in national tax revenues.\nAlthough the implementation of digital advertising taxes involves challenges, the potential advantages make it a valuable pursuit. By tapping into the revenue generated by digital platforms, governments can help balance the financial scales between traditional and digital businesses, support essential public services, and foster a fairer tax system.\u00a0\nThe post Governments Confront the Challenge of Taxing Digital Advertising appeared first on PYMNTS.com.", "date_published": "2024-08-27T18:30:04-04:00", "date_modified": "2024-08-27T18:30:04-04:00", "authors": [ { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" } ], "author": { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" }, "image": "https://www.pymnts.com/wp-content/uploads/2024/08/digital-advertising.jpg", "tags": [ "digital ads", "digital advertising", "digital services tax", "digital transformation", "MIT Sloan", "News", "PYMNTS News", "Taxes" ] }, { "id": "https://www.pymnts.com/?p=2020162", "url": "https://www.pymnts.com/taxes/2024/mind-your-bs-and-ps-irs-notices-and-penalties-loom-for-unprepared-firms-this-fall/", "title": "Mind Your B\u2019s and P\u2019s: IRS Notices and Penalties Loom for Unprepared Firms This Fall", "content_html": "April has come and gone but a slew of IRS notices loom this fall as companies may be on the hook for erroneously filed returns, or incorrect information tied to details as simple as names and addresses.
\nWendy Walker, VP, Regulatory Affairs at Sovos, told PYMNTS that when information is missing or doesn\u2019t match IRS records, hefty fines can accrue \u2014 and the administrative burden of keeping track of all those details is considerable.
\nCase in point: The CP2100 notice \u2014 often referred to as a \u201cB notice\u201d for short \u2014 is the backup withholding notice issued by the IRS tied to payments of interest, dividends or gains from the sale of property. The withholding notice also applies to rent and royalties \u2014 in short, all non-employee types of compensation.
\n\u201cThe B notice tells a filer that the tax identification information that they reported on certain Form 1099s previously were incorrect, especially Taxpayer Identification Numbers [TIN] \u2014 and as a result, the IRS cannot match those forms with its own records, or collect the taxes that are due.\u201d
\nAs a result, the filer may need to \u201cback up\u201d or withhold 24% on future payments to the payee, until they can get \u00a0the correct info from that payee. The details can be basic, spanning legal names and Social Security numbers, for example \u2014 and payees don\u2019t always understand exactly what data they should be providing. The complexities can be pronounced with pass-through entities like sole proprietors, single member LLCs, where there can be the inadvertent inclusion of erroneous data.
\nB notices are issued in the September-to-October time frame and apply to the most recent calendar year \u2014 so companies will start receiving notices applicable to 2023 in just a few months. For the companies that do not get a TIN in the manner required \u2014 well, those firms can be liable for any withholding from the time period covered and beyond.
\nEventually, companies that are found to be deficient in what they\u2019ve filed, a 972CG notice \u2014 or \u201cP notice\u201d \u2014 often follows, representing a proposed penalty issued by the IRS for all manner of faulty returns.
\n\u201cAny filer that files an information return that had incorrect information or filed late,\u201d Walker said, \u201cor filed using the incorrect formats, should expect to receive this notice every year\u201d for each year that had errors. But there\u2019s room for confusion here, as the P notices are issued in the August to September time frame, but address errors from two calendar years ago. Thus: Starting next month, filers will receive penalty notices from the IRS that apply to tax year 2022, but at roughly the same time will get the B notices that apply to 2023.\u00a0
\nJuggling the different forms all can be challenging to say the least, especially in the financial services, payment processing and insurance industries, where tens of thousands of filings each year are the norm.
\nA significant percentage of firms, said Walker, tackle their 1099 reporting once a year \u2026 and then just wait for the IRS to issue these error notices and penalties. For a company that waits until Aug. 1 to address their issues, the penalty is $120 per filing. For the companies that wait until after that date, the penalty is $310 per record. Any finding that a company has intentionally disregarding the rules altogether is liable for a penalty of $630 per return.
\nIn her own experience with these B and P notices, and working with client firms prior to Sovos, Walker said it has not been uncommon for entities to be fined hundreds of thousands of dollars or even millions of dollars. The penalty cap is nearly $4 million for a large business and $1.3 million for a smaller firm.
\nA proactive approach, she said, can help head those errors off at the pass \u2014 and companies that are careful about their W-9 documentation (which informs 1099s) can prevent headaches later. Walker told PYMNTS that Sovos recommends that firms use matching solutions in their onboarding and back-office operations. Providers such as Sovos have real-time solutions that offer real-time TIN matching according to the IRS database.
\n\u201cIf you\u2019re in a company that does anti-money laundering practices or know your customer and you\u2019re collecting a bunch of that information, unless you are actually verifying that TIN to the IRS database, verifying to [any] other database doesn\u2019t matter from an IRS perspective.\u201d
\n\u00a0
\nThe post Mind Your B\u2019s and P\u2019s: IRS Notices and Penalties Loom for Unprepared Firms This Fall appeared first on PYMNTS.com.
\n", "content_text": "April has come and gone but a slew of IRS notices loom this fall as companies may be on the hook for erroneously filed returns, or incorrect information tied to details as simple as names and addresses.\nWendy Walker, VP, Regulatory Affairs at Sovos, told PYMNTS that when information is missing or doesn\u2019t match IRS records, hefty fines can accrue \u2014 and the administrative burden of keeping track of all those details is considerable. \nCase in point: The CP2100 notice \u2014 often referred to as a \u201cB notice\u201d for short \u2014 is the backup withholding notice issued by the IRS tied to payments of interest, dividends or gains from the sale of property. The withholding notice also applies to rent and royalties \u2014 in short, all non-employee types of compensation.\n\u201cThe B notice tells a filer that the tax identification information that they reported on certain Form 1099s previously were incorrect, especially Taxpayer Identification Numbers [TIN] \u2014 and as a result, the IRS cannot match those forms with its own records, or collect the taxes that are due.\u201d\nAs a result, the filer may need to \u201cback up\u201d or withhold 24% on future payments to the payee, until they can get \u00a0the correct info from that payee. The details can be basic, spanning legal names and Social Security numbers, for example \u2014 and payees don\u2019t always understand exactly what data they should be providing. The complexities can be pronounced with pass-through entities like sole proprietors, single member LLCs, where there can be the inadvertent inclusion of erroneous data.\nB notices are issued in the September-to-October time frame and apply to the most recent calendar year \u2014 so companies will start receiving notices applicable to 2023 in just a few months. For the companies that do not get a TIN in the manner required \u2014 well, those firms can be liable for any withholding from the time period covered and beyond.\nEventually, companies that are found to be deficient in what they\u2019ve filed, a 972CG notice \u2014 or \u201cP notice\u201d \u2014 often follows, representing a proposed penalty issued by the IRS for all manner of faulty returns.\n\u201cAny filer that files an information return that had incorrect information or filed late,\u201d Walker said, \u201cor filed using the incorrect formats, should expect to receive this notice every year\u201d for each year that had errors. But there\u2019s room for confusion here, as the P notices are issued in the August to September time frame, but address errors from two calendar years ago. Thus: Starting next month, filers will receive penalty notices from the IRS that apply to tax year 2022, but at roughly the same time will get the B notices that apply to 2023.\u00a0\nJuggling the different forms all can be challenging to say the least, especially in the financial services, payment processing and insurance industries, where tens of thousands of filings each year are the norm.\nA significant percentage of firms, said Walker, tackle their 1099 reporting once a year \u2026 and then just wait for the IRS to issue these error notices and penalties. For a company that waits until Aug. 1 to address their issues, the penalty is $120 per filing. For the companies that wait until after that date, the penalty is $310 per record. Any finding that a company has intentionally disregarding the rules altogether is liable for a penalty of $630 per return.\nIn her own experience with these B and P notices, and working with client firms prior to Sovos, Walker said it has not been uncommon for entities to be fined hundreds of thousands of dollars or even millions of dollars. The penalty cap is nearly $4 million for a large business and $1.3 million for a smaller firm.\nA Proactive Approach\nA proactive approach, she said, can help head those errors off at the pass \u2014 and companies that are careful about their W-9 documentation (which informs 1099s) can prevent headaches later. Walker told PYMNTS that Sovos recommends that firms use matching solutions in their onboarding and back-office operations. Providers such as Sovos have real-time solutions that offer real-time TIN matching according to the IRS database.\n\u201cIf you\u2019re in a company that does anti-money laundering practices or know your customer and you\u2019re collecting a bunch of that information, unless you are actually verifying that TIN to the IRS database, verifying to [any] other database doesn\u2019t matter from an IRS perspective.\u201d\n\u00a0\nThe post Mind Your B\u2019s and P\u2019s: IRS Notices and Penalties Loom for Unprepared Firms This Fall appeared first on PYMNTS.com.", "date_published": "2024-08-02T04:02:15-04:00", "date_modified": "2024-08-04T22:09:03-04:00", "authors": [ { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" } ], "author": { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" }, "image": "https://www.pymnts.com/wp-content/uploads/2024/08/IRS-regulation-Walker.jpg", "tags": [ "972CG notice", "B notice", "B2B", "B2B Payments", "commercial payments", "CP2100 notice", "Featured News", "IRS", "News", "P notice", "PYMNTS News", "pymnts tv", "Sovos", "Taxes", "video", "Wendy Walker" ] }, { "id": "https://www.pymnts.com/?p=2012771", "url": "https://www.pymnts.com/taxes/2024/arvo-tech-raises-2-5-million-to-expand-tax-credit-platform/", "title": "Arvo Tech Raises $2.5 Million to Expand Tax Credit Platform", "content_html": "Arvo Tech has raised $2.5 million in a Series A funding round to deliver its tax strategy solution to more small and medium-sized businesses (SMBs).,
\nThe company will use the new funding to expand its strategic partner program, continue to develop its tax credit platform and help SMBs implement an overall tax strategy, Arvo Tech said in a Wednesday (July 17) press release.
\n\u201cBy housing tax credits and tax strategy under one roof, we are providing companies with the tools necessary to make better financial decisions and capitalize on incentive programs available to them,\u201d Terracina Maxwell, co-founder and president of Arvo Tech, said in the release. \u201cMany SMBs are unaware of the initiatives, so we can make a big impact by bringing these disparate programs and strategies together for them.\u201d
\nArvo Tech\u2019s tax credit support includes evaluating which employment tax credits are available to each business, continually monitoring to ensure each business can get the maximum tax credits, providing the completed IRS forms businesses need to claim their credits, and providing all necessary documentation and support from tax attorneys in case of an IRS audit, according to the release.
\nThe company also helps businesses develop a comprehensive tax plan, prepare all necessary documents and applications, monitor their progress toward meeting their tax strategy goals, and ensure compliance with IRS regulations, the release said.
\nArvo Tech has helped companies in a range of industries claim a total of $650 million in tax credits, per the release.
\n\u201cArvo Tech has emerged as a leader in this space,\u201d David Grove, managing partner at Bandon Partners, which led the company\u2019s latest funding round, said in the release. \u201cBacked by a team with deep expertise and combined with its unparalleled technology, Arvo is set to disrupt how businesses plan and access critical incentive dollars.\u201d
\nIn another recent development in the tax space, Kintsugi said in May that it raised $6 million in a Series A funding round to further develop its tax automation platform.
\nKintsugi\u2019s platform aims to help both eCommerce and software-as-a-service (SaaS) businesses replace manual processes with an automated sales tax compliance solution.
\nThe post Arvo Tech Raises $2.5 Million to Expand Tax Credit Platform appeared first on PYMNTS.com.
\n", "content_text": "Arvo Tech has raised $2.5 million in a Series A funding round to deliver its tax strategy solution to more small and medium-sized businesses (SMBs).,\nThe company will use the new funding to expand its strategic partner program, continue to develop its tax credit platform and help SMBs implement an overall tax strategy, Arvo Tech said in a Wednesday (July 17) press release.\n\u201cBy housing tax credits and tax strategy under one roof, we are providing companies with the tools necessary to make better financial decisions and capitalize on incentive programs available to them,\u201d Terracina Maxwell, co-founder and president of Arvo Tech, said in the release. \u201cMany SMBs are unaware of the initiatives, so we can make a big impact by bringing these disparate programs and strategies together for them.\u201d\nArvo Tech\u2019s tax credit support includes evaluating which employment tax credits are available to each business, continually monitoring to ensure each business can get the maximum tax credits, providing the completed IRS forms businesses need to claim their credits, and providing all necessary documentation and support from tax attorneys in case of an IRS audit, according to the release.\nThe company also helps businesses develop a comprehensive tax plan, prepare all necessary documents and applications, monitor their progress toward meeting their tax strategy goals, and ensure compliance with IRS regulations, the release said.\nArvo Tech has helped companies in a range of industries claim a total of $650 million in tax credits, per the release.\n\u201cArvo Tech has emerged as a leader in this space,\u201d David Grove, managing partner at Bandon Partners, which led the company\u2019s latest funding round, said in the release. \u201cBacked by a team with deep expertise and combined with its unparalleled technology, Arvo is set to disrupt how businesses plan and access critical incentive dollars.\u201d\nIn another recent development in the tax space, Kintsugi said in May that it raised $6 million in a Series A funding round to further develop its tax automation platform.\nKintsugi\u2019s platform aims to help both eCommerce and software-as-a-service (SaaS) businesses replace manual processes with an automated sales tax compliance solution.\nThe post Arvo Tech Raises $2.5 Million to Expand Tax Credit Platform appeared first on PYMNTS.com.", "date_published": "2024-07-17T22:20:36-04:00", "date_modified": "2024-07-17T22:20:36-04:00", "authors": [ { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" } ], "author": { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" }, "image": "https://www.pymnts.com/wp-content/uploads/2024/07/Arvo-Tech-small-business.jpg", "tags": [ "Arvo Tech", "B2B", "B2B Payments", "Bandon Partners", "commercial payments", "David Grove", "News", "PYMNTS News", "small business", "SMBs", "tax credits", "Taxes", "Terracina Maxwell", "What's Hot", "What's Hot In B2B" ] }, { "id": "https://www.pymnts.com/?p=1974479", "url": "https://www.pymnts.com/taxes/2024/sovos-ceo-says-government-tax-compliance-mandates-push-cfos-to-modernize/", "title": "Sovos CEO Says Government Tax Compliance Mandates Push CFOs to Modernize", "content_html": "Governments around the world are using mandates to modernize and digitize all manner of activities, including how they collect taxes.
\nTo get a sense of the task at hand and its complexity, there are 19,000 taxing jurisdictions making thousands of changes, which has a ripple effect across the entire supply chain.
\n\u201cThe governments are telling companies, in real time, what their responsibilities are,\u201d Sovos CEO Kevin Akeroyd told Karen Webster, no matter if the company in question is a Fortune 500 conglomerate or a bakery in Portugal that ships cookies to five countries in the European Union.
\nBut as Akeroyd noted, for the corporates embracing those changes, the impact is not solely about avoiding government actions.
\n\u201cThe stakes are just too high to get this wrong,\u201d he told Webster, taking stock of the first half of 2024 as part of the \u201cWhat\u2019s Next in Payments\u201d series. \u201cAnd none of this can be done in silos.\u201d
\nOne might say that taxing authorities are using a bit of a carrot-and-stick approach, as being compliant means modernizing the office of the chief financial officer. Not being compliant means goods don\u2019t ship. Part of the modernization mandate is collecting taxes before goods ship, not after they ship and money is collected from the buyer.
\n\u201cIt\u2019s not about a penalty in the background anymore,\u201d said Akeroyd. \u201cIt\u2019s about \u2018Do I get to do business tomorrow?\u2019\u201d
\nBut compliance differs wildly from country to country. Romania is different from France, France is different from Portugal, and so on. As Akeroyd said, \u201cthere\u2019s a massive amount of complexity on top of this huge demand for change, for digitization.\u201d
\nThere are some issues with which to grapple. Many enterprises don\u2019t have the resources to meet the new, 21st-century tax compliance challenges. For the small baker, there\u2019s a Byzantine labyrinth of systems, people, processes and data to deal with. Dozens of countries have implemented a value-added tax (VAT) or goods and services tax on cross-border online sales.
\n\u201cThe corporation out there is not where it needs to be in terms of a state of readiness, and they\u2019re relying on a lot of service and technology people who do this for a living 24/7,\u201d said Akeroyd. \u201cThe end user needs a lot of help.\u201d
\nFirms such as Sovos create an orchestration layer that lets ERPs talk to order-to-cash systems and develop a system of record that avoids a veritable Frankenstein\u2019s monster of processes and data flows and dozens of vendors, Akeroyd said.
\nGenerative artificial intelligence has a role here, too, as rules become clearer about how advanced technologies are governed, how data privacy dictates ethical use, and how AI can be used for productivity.
\n\u201cThe content and data rules can be quickly translated into either self-help or automated support or faster product evolution that we can push forward right into actual end-user products,\u201d he said.
\nAlthough it\u2019s slow going, we\u2019ll see more commonality of tax reporting across the EU, and through the next several months, \u201cthere will be more clarity headed into the second half of 2024,\u201d Akeroyd said.
\nAs he told Webster, \u201cno matter where we sit in the ecosystem, humans have got to embrace change and get ahead of it.\u201d With the shifting sands of tax compliance, \u201cthere\u2019s a lot of rationality out there, and people are trying to get themselves ahead on the maturity curve\u201d as they harness technology to pay the tax man.
\nThe post Sovos CEO Says Government Tax Compliance Mandates Push CFOs to Modernize appeared first on PYMNTS.com.
\n", "content_text": "Governments around the world are using mandates to modernize and digitize all manner of activities, including how they collect taxes.\nTo get a sense of the task at hand and its complexity, there are 19,000 taxing jurisdictions making thousands of changes, which has a ripple effect across the entire supply chain.\n\u201cThe governments are telling companies, in real time, what their responsibilities are,\u201d Sovos CEO Kevin Akeroyd told Karen Webster, no matter if the company in question is a Fortune 500 conglomerate or a bakery in Portugal that ships cookies to five countries in the European Union.\nBut as Akeroyd noted, for the corporates embracing those changes, the impact is not solely about avoiding government actions.\n\u201cThe stakes are just too high to get this wrong,\u201d he told Webster, taking stock of the first half of 2024 as part of the \u201cWhat\u2019s Next in Payments\u201d series. \u201cAnd none of this can be done in silos.\u201d\nEnsuring Business Continuity\nOne might say that taxing authorities are using a bit of a carrot-and-stick approach, as being compliant means modernizing the office of the chief financial officer. Not being compliant means goods don\u2019t ship. Part of the modernization mandate is collecting taxes before goods ship, not after they ship and money is collected from the buyer.\n\u201cIt\u2019s not about a penalty in the background anymore,\u201d said Akeroyd. \u201cIt\u2019s about \u2018Do I get to do business tomorrow?\u2019\u201d\nBut compliance differs wildly from country to country. Romania is different from France, France is different from Portugal, and so on. As Akeroyd said, \u201cthere\u2019s a massive amount of complexity on top of this huge demand for change, for digitization.\u201d\nThere are some issues with which to grapple. Many enterprises don\u2019t have the resources to meet the new, 21st-century tax compliance challenges. For the small baker, there\u2019s a Byzantine labyrinth of systems, people, processes and data to deal with. Dozens of countries have implemented a value-added tax (VAT) or goods and services tax on cross-border online sales.\n\u201cThe corporation out there is not where it needs to be in terms of a state of readiness, and they\u2019re relying on a lot of service and technology people who do this for a living 24/7,\u201d said Akeroyd. \u201cThe end user needs a lot of help.\u201d\nAutomation and Orchestration\nFirms such as Sovos create an orchestration layer that lets ERPs talk to order-to-cash systems and develop a system of record that avoids a veritable Frankenstein\u2019s monster of processes and data flows and dozens of vendors, Akeroyd said.\nGenerative artificial intelligence has a role here, too, as rules become clearer about how advanced technologies are governed, how data privacy dictates ethical use, and how AI can be used for productivity.\n\u201cThe content and data rules can be quickly translated into either self-help or automated support or faster product evolution that we can push forward right into actual end-user products,\u201d he said.\nAlthough it\u2019s slow going, we\u2019ll see more commonality of tax reporting across the EU, and through the next several months, \u201cthere will be more clarity headed into the second half of 2024,\u201d Akeroyd said.\nAs he told Webster, \u201cno matter where we sit in the ecosystem, humans have got to embrace change and get ahead of it.\u201d With the shifting sands of tax compliance, \u201cthere\u2019s a lot of rationality out there, and people are trying to get themselves ahead on the maturity curve\u201d as they harness technology to pay the tax man.\nThe post Sovos CEO Says Government Tax Compliance Mandates Push CFOs to Modernize appeared first on PYMNTS.com.", "date_published": "2024-07-11T04:00:37-04:00", "date_modified": "2024-07-16T22:42:21-04:00", "authors": [ { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" } ], "author": { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" }, "image": "https://www.pymnts.com/wp-content/uploads/2024/07/Sovos-tax-compliance.jpg", "tags": [ "automation", "B2B", "B2B Payments", "commercial payments", "compliance", "cross-border commerce", "cross-border payments", "Featured News", "Global Payments", "Government", "Kevin Akeroyd", "News", "Payments Orchestration", "PYMNTS News", "pymnts tv", "SMBs", "Sovos", "Taxes", "Technology", "video", "WHATSNEXTINPAYMENTSSERIES + What\u2019s Next In Payments: The Halftime Report 2024" ] }, { "id": "https://www.pymnts.com/?p=1972596", "url": "https://www.pymnts.com/taxes/2024/taxbit-and-taina-partner-on-gig-economy-onboarding-tax-reporting/", "title": "TaxBit and Taina Partner on Gig Economy Onboarding, Tax Reporting", "content_html": "Tax compliance solution providers TaxBit and Taina Technology have teamed up to help digital marketplaces with their onboarding and reporting needs related to gig workers.
\nDesigned for users in the United States and other countries, the new solution offered by this partnership is designed to help digital marketplaces navigate the global regulatory landscape, the companies said in a Monday (July 8) press release.
\nIn this partnership, Taina will facilitate data collection, while TaxBit will simplify tax computations for income and eligibility and streamline the management of forms and any issues associated with B-Notices, according to the release.
\nWith these capabilities brought together in a single solution, enterprises can increase their efficiency in everything from onboarding to reporting, the release said.
\nThis solution arrives at a time when the global regulatory landscape is evolving. In the U.S., for example, the Internal Revenue Service (IRS) has implemented new reporting thresholds for 1099-K forms, requiring gig workers to report income over $5,000 in 2024 and over $600 in 2025, per the release.
\n\u201cTogether, our \u2026 platforms, shared experiences and resources will enable us to provide end-to-end tax compliance, keeping pace with the evolving regulatory landscape,\u201d Sarah Cooper, chief revenue officer at Taina Technology, said in the release.
\nErin Fennimore, vice president of tax solutions at TaxBit, said in the release that the partnership will \u201credefine tax compliance for the gig economy and digital platforms.\u201d
\nCompliance changes can be \u201csudden, relentless and consequential,\u201d Kevin Akeroyd, CEO at compliance technology provider Sovos, wrote in the PYMNTS eBook, \u201cThe Implications of Uncertainty.\u201d
\nThere are more than 14,000 regulatory changes monthly covering over 19,000 tax jurisdictions, according to Akeroyd.
\n\u201cBecause of this, three of the biggest challenges facing companies right now are risk, cost and lack of insights,\u201d Akeroyd wrote. \u201cEach of them can be addressed with the right technology and data.\u201d
\nIn the case of the IRS\u2019s new reporting thresholds for 1099-K forms, the implementation was delayed in the past following feedback from taxpayers, tax professionals and payment processors.
\nThe current plans for implementation resulted from efforts to reduce confusion and ensure a smoother transition, the IRS said in a November 2023 press release.
\nFor all PYMNTS B2B coverage, subscribe to the daily\u00a0B2B Newsletter.
\nThe post TaxBit and Taina Partner on Gig Economy Onboarding, Tax Reporting appeared first on PYMNTS.com.
\n", "content_text": "Tax compliance solution providers TaxBit and Taina Technology have teamed up to help digital marketplaces with their onboarding and reporting needs related to gig workers.\nDesigned for users in the United States and other countries, the new solution offered by this partnership is designed to help digital marketplaces navigate the global regulatory landscape, the companies said in a Monday (July 8) press release.\nIn this partnership, Taina will facilitate data collection, while TaxBit will simplify tax computations for income and eligibility and streamline the management of forms and any issues associated with B-Notices, according to the release.\nWith these capabilities brought together in a single solution, enterprises can increase their efficiency in everything from onboarding to reporting, the release said.\nThis solution arrives at a time when the global regulatory landscape is evolving. In the U.S., for example, the Internal Revenue Service (IRS) has implemented new reporting thresholds for 1099-K forms, requiring gig workers to report income over $5,000 in 2024 and over $600 in 2025, per the release.\n\u201cTogether, our \u2026 platforms, shared experiences and resources will enable us to provide end-to-end tax compliance, keeping pace with the evolving regulatory landscape,\u201d Sarah Cooper, chief revenue officer at Taina Technology, said in the release.\nErin Fennimore, vice president of tax solutions at TaxBit, said in the release that the partnership will \u201credefine tax compliance for the gig economy and digital platforms.\u201d\nCompliance changes can be \u201csudden, relentless and consequential,\u201d Kevin Akeroyd, CEO at compliance technology provider Sovos, wrote in the PYMNTS eBook, \u201cThe Implications of Uncertainty.\u201d\nThere are more than 14,000 regulatory changes monthly covering over 19,000 tax jurisdictions, according to Akeroyd.\n\u201cBecause of this, three of the biggest challenges facing companies right now are risk, cost and lack of insights,\u201d Akeroyd wrote. \u201cEach of them can be addressed with the right technology and data.\u201d\nIn the case of the IRS\u2019s new reporting thresholds for 1099-K forms, the implementation was delayed in the past following feedback from taxpayers, tax professionals and payment processors.\nThe current plans for implementation resulted from efforts to reduce confusion and ensure a smoother transition, the IRS said in a November 2023 press release.\nFor all PYMNTS B2B coverage, subscribe to the daily\u00a0B2B Newsletter.\nThe post TaxBit and Taina Partner on Gig Economy Onboarding, Tax Reporting appeared first on PYMNTS.com.", "date_published": "2024-07-08T12:51:05-04:00", "date_modified": "2024-07-08T12:51:05-04:00", "authors": [ { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" } ], "author": { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" }, "image": "https://www.pymnts.com/wp-content/uploads/2024/07/TaxBit-Taina-gig-tax.png", "tags": [ "B2B", "B2B Payments", "gig economy", "Gig Workers", "News", "partnerships", "PYMNTS News", "Taina Technology", "TaxBit", "Taxes", "What's Hot", "What's Hot In B2B" ] }, { "id": "https://www.pymnts.com/?p=1954933", "url": "https://www.pymnts.com/taxes/2024/cfos-struggle-to-manage-complexities-of-state-tax-filings/", "title": "CFOs Struggle to Manage Complexities of State Tax Filings", "content_html": "Tax season might be over. But then again, there\u2019s always next year.
\nAs Wendy Walker, solution principal at Sovos, told PYMNTS, the complexities of tax reporting will still demand that organizations of all sizes gear up for changes in the tax code and rigorous reporting requirements that will always be fluid and complex.
\nBut one thing is simpler: The IRS\u2019 Combined Federal and State Filing program seeks to simplify some of that complexity by taking things online. As Walker told PYMNTS, direct state reporting takes place \u2014 as the name implies \u2014 when an enterprise files 1099 tax information directly with a state government.
\n\u201cGenerally speaking, if you are required to issue a 1099 to the IRS, there is going to be a state requirement as well,\u201d she said.
\nTax laws require that states use most of the information contained in 1099s, W-2s and other returns that are filed with the IRS to compare income and withholding amounts on state income returns.
\nAlthough state tax reporting is nothing new \u2014 it\u2019s been around for decades \u2014 Walker noted that enforcement has seen some renewed vigor in terms of making sure that all the information matches up. Missteps or failure to file those forms with the states winds up having consequences, chiefly in the form of penalties.
\n\u201cSometimes states have a per-failure penalty rate, so they will charge a certain dollar amount for each information return that has not been filed,\u201d she said. \u201cOther states will levy penalties based on the income reported on the returns that were not filed.\u201d
\n\u201cThere can be pretty stiff penalties, depending on the state,\u201d she added.
\nAmid the stepped-up enforcement, complexity reigns too. This is becoming more apparent as states lower direct-reporting requirements below IRS thresholds. Walker offered the example where some states now require direct reporting of Form 1099-K for transactions done through online apps such as Uber and DoorDash at a $600 threshold, while the IRS only plans to lower the federal threshold to $5,000 for 2024 reporting.
\nAlthough the IRS\u2019 combined filing program seeks to allow states to file information with the IRS \u2014 and the IRS shares the info with the states \u2014 the fact remains that the IRS does not (yet) support all the information that states require. California, in just one instance, requires information returns for cancellation of debt that are not included in the combined program.
\n\u201cSo, if you are in California, you would have to file those returns directly with the state instead of being able to rely on the IRS,\u201d Walker said.
\nIn other cases, some states are listed as participating in the combined program, but their websites say that companies must file directly.
\n\u201cThis can all get a bit confusing,\u201d Walker said.
\nAdd in the fact that the rules change frequently, well into the first months of the year, and some states still accept paper filings (while others have pivoted only to digital channels), and companies must find ways and means to make sense of it all and reduce their tax reporting burdens.
\nRelying solely on the states\u2019 systems may be a hurdle to easing those pain points, as only two-thirds of states have fully modernized their tax reporting systems, which means a sizable percentage of states have not.
\n\u201cSome states are in the early stages of testing those new systems, so the impact of the technological changes are not yet known,\u201d Walker said.
\nCompanies should examine the benefits of partnering with providers such as Sovos to streamline connectivity and compliance, while outsourcing the burden of keeping up-to-date on the constantly shifting tax reporting landscape, she said.
\n\u201cHaving a provider that can ingest the data, transform it into various state tax outputs and into the IRS combined federal and state filing formats takes on that burden for your organization instead of you doing it all yourself,\u201d she said.
\nThe post CFOs Struggle to Manage Complexities of State Tax Filings appeared first on PYMNTS.com.
\n", "content_text": "Tax season might be over. But then again, there\u2019s always next year.\nAs Wendy Walker, solution principal at Sovos, told PYMNTS, the complexities of tax reporting will still demand that organizations of all sizes gear up for changes in the tax code and rigorous reporting requirements that will always be fluid and complex.\nBut one thing is simpler: The IRS\u2019 Combined Federal and State Filing program seeks to simplify some of that complexity by taking things online. As Walker told PYMNTS, direct state reporting takes place \u2014 as the name implies \u2014 when an enterprise files 1099 tax information directly with a state government.\n\u201cGenerally speaking, if you are required to issue a 1099 to the IRS, there is going to be a state requirement as well,\u201d she said.\nTax laws require that states use most of the information contained in 1099s, W-2s and other returns that are filed with the IRS to compare income and withholding amounts on state income returns.\nEnforcement Is Ramping Up\nAlthough state tax reporting is nothing new \u2014 it\u2019s been around for decades \u2014 Walker noted that enforcement has seen some renewed vigor in terms of making sure that all the information matches up. Missteps or failure to file those forms with the states winds up having consequences, chiefly in the form of penalties.\n\u201cSometimes states have a per-failure penalty rate, so they will charge a certain dollar amount for each information return that has not been filed,\u201d she said. \u201cOther states will levy penalties based on the income reported on the returns that were not filed.\u201d\n\u201cThere can be pretty stiff penalties, depending on the state,\u201d she added.\nAmid the stepped-up enforcement, complexity reigns too. This is becoming more apparent as states lower direct-reporting requirements below IRS thresholds. Walker offered the example where some states now require direct reporting of Form 1099-K for transactions done through online apps such as Uber and DoorDash at a $600 threshold, while the IRS only plans to lower the federal threshold to $5,000 for 2024 reporting.\nAlthough the IRS\u2019 combined filing program seeks to allow states to file information with the IRS \u2014 and the IRS shares the info with the states \u2014 the fact remains that the IRS does not (yet) support all the information that states require. California, in just one instance, requires information returns for cancellation of debt that are not included in the combined program.\n\u201cSo, if you are in California, you would have to file those returns directly with the state instead of being able to rely on the IRS,\u201d Walker said.\nIn other cases, some states are listed as participating in the combined program, but their websites say that companies must file directly.\n\u201cThis can all get a bit confusing,\u201d Walker said.\nAdd in the fact that the rules change frequently, well into the first months of the year, and some states still accept paper filings (while others have pivoted only to digital channels), and companies must find ways and means to make sense of it all and reduce their tax reporting burdens.\nRelying solely on the states\u2019 systems may be a hurdle to easing those pain points, as only two-thirds of states have fully modernized their tax reporting systems, which means a sizable percentage of states have not.\n\u201cSome states are in the early stages of testing those new systems, so the impact of the technological changes are not yet known,\u201d Walker said.\nCompanies should examine the benefits of partnering with providers such as Sovos to streamline connectivity and compliance, while outsourcing the burden of keeping up-to-date on the constantly shifting tax reporting landscape, she said.\n\u201cHaving a provider that can ingest the data, transform it into various state tax outputs and into the IRS combined federal and state filing formats takes on that burden for your organization instead of you doing it all yourself,\u201d she said.\nThe post CFOs Struggle to Manage Complexities of State Tax Filings appeared first on PYMNTS.com.", "date_published": "2024-06-05T04:01:52-04:00", "date_modified": "2024-06-10T22:50:09-04:00", "authors": [ { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" } ], "author": { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" }, "image": "https://www.pymnts.com/wp-content/uploads/2024/06/tax-filing-Sovos-compliance.jpg", "tags": [ "B2B", "B2B Payments", "commercial payments", "compliance", "Featured News", "Government", "IRS", "News", "PYMNTS News", "pymnts tv", "Sovos", "Taxes", "video", "Wendy Walker" ] }, { "id": "https://www.pymnts.com/?p=1938361", "url": "https://www.pymnts.com/taxes/2024/irs-modernization-efforts-pose-challenges-as-enterprises-embrace-efiling/", "title": "IRS Modernization Efforts Pose Challenges as Enterprises Embrace eFiling \u00a0", "content_html": "Digital transformation is becoming as inevitable as the reality of paying taxes. And as many companies discovered during the recent tax season, even the IRS is going digital.
\nAs Wendy Walker, solution principal at Sovos, told PYMNTS, the Internal Revenue Service\u2019s ongoing digitization efforts pose challenges \u2014 and benefits \u2014 for enterprises switching from paper-based filing and processes.
\n\u201cLike any large business, the IRS has a vast portfolio of operating systems,\u201d Walker said. The agency relies on more than 40 mainframe systems, over 900 mid-range systems and close to 3000 vendor-supplied applications.
\nSome of those legacy applications and systems, she observed, are decades old \u2014 stretching as far back as the 1960s. Some of them still operate with \u201cgreen screen\u201d terminals.
\nThe antiquated operations mean that there\u2019s still a significant amount of time and resources spent entering data manually, and there\u2019s still a huge amount of paper in the mix.
\nAs the National Taxpayer Advocate Erin Collins said to Congress in 2022, and as recounted by Walker: Paper is kryptonite to the IRS \u2014 and it\u2019s buried in it.
\nIn addition to millions of income tax returns and employment tax returns, the IRS receives over 5 billion information returns annually, in the form of 1099s and W-2s. While most of them are filed electronically, there are still tens of millions of information returns filed via paper submissions.
\nLittle wonder, then, that beginning in 2019, the \u201csystem modernization journey\u201d \u2014 as Walker termed it \u2014 took root with the Taxpayer First Act (TFA). Congress mandated that the IRS would have to \u201creimagine\u201d the taxpayer experience \u2014 with 45 provisions that restructured the IRS and charted a path toward improving all manner of taxpayer interactions, including updating systems and \u00a0processes.
\nTo modernize the intake of 5 billion information returns, the TFA mandated that the IRS build a new 1099 reporting system and with help from annual appropriations.
\nLast year, the IRS debuted the Information Return Intake System (IRIS), an online 1099 filing system that allows filers to manually create and electronically file 1099 returns. However, the system is not yet ready to take in billions of information returns electronically. Businesses with hundreds to millions of returns to file need a more streamlined method.
\nWith help from Inflation Reduction Act funding, the IRS has been working to build application programming interface (API) connectivity since last year. The benefits of modernizing this transfer of data include reduced errors and faster processing times.
\n\u201cBeing able to click a button within an application and have it send that information directly is going to take a lot [of inefficiencies] out of that filing process,\u201d Walker said. In addition, the IRIS platform alerts filers in real time whether critical information is missing or invalid from the returns, including incorrect taxpayer identification numbers.
\nFor corporations (especially the firms that make up Sovos\u2019 client base), and for financial services firms in particular, the IRS\u2019 efforts may have a ripple effect.
\n\u201cWith respect to the IRIS system,\u201d she said, \u201cit\u2019s a huge shift for the industry.\u201d
\nEnterprise accounting systems like SAP and Oracle and core payment and financial services platforms like Fiserv and FIS all have built-in programming for generating the current IRS 1099 file format. States require information return reporting, and most rely on the legacy FIRE (that\u2019s \u201cfiling information returns electronically\u201d) system, a network used for processing filing forms.
\n\u201cOrganizations need to think about how the IRS is moving all of us over to IRIS and away from the legacy systems,\u201d including the already-in-place FIRE, said Walker, because IRIS requires different filing formats and processes.
\nShe advised that companies should consider implementing a project team to help manage those operations and technology changes. The transition may be especially challenging if the IRS decides that it will not continue to support some of the information return types on FIRE, forcing a filer to file return information in both IRIS and FIRE to comply with annual filing requirements.
\nIn the months ahead, she said, paperless initiatives will continue to be a top priority at the IRS, and there will likely be more legislation from Congress mandating more eFiling initiatives and technological\u00a0 innovations.
\n\u201cYou have to think from an organizational perspective about how you\u2019re going to change over those systems and processes and procedures, and what those impacts are to everybody in between \u2026 and be prepared to respond on your timeline as an organization and not hopefully on the IRS\u2019,\u201d she said.
\nThe post IRS Modernization Efforts Pose Challenges as Enterprises Embrace eFiling \u00a0 appeared first on PYMNTS.com.
\n", "content_text": "Digital transformation is becoming as inevitable as the reality of paying taxes. And as many companies discovered during the recent tax season, even the IRS is going digital.\nAs Wendy Walker, solution principal at Sovos, told PYMNTS, the Internal Revenue Service\u2019s ongoing digitization efforts pose challenges \u2014 and benefits \u2014 for enterprises switching from paper-based filing and processes.\n\u201cLike any large business, the IRS has a vast portfolio of operating systems,\u201d Walker said. The agency relies on more than 40 mainframe systems, over 900 mid-range systems and close to 3000 vendor-supplied applications.\nSome of those legacy applications and systems, she observed, are decades old \u2014 stretching as far back as the 1960s. Some of them still operate with \u201cgreen screen\u201d terminals.\nThe antiquated operations mean that there\u2019s still a significant amount of time and resources spent entering data manually, and there\u2019s still a huge amount of paper in the mix.\nAs the National Taxpayer Advocate Erin Collins said to Congress in 2022, and as recounted by Walker: Paper is kryptonite to the IRS \u2014 and it\u2019s buried in it.\nIn addition to millions of income tax returns and employment tax returns, the IRS receives over 5 billion information returns annually, in the form of 1099s and W-2s. While most of them are filed electronically, there are still tens of millions of information returns filed via paper submissions.\nStriving Toward Modernization \nLittle wonder, then, that beginning in 2019, the \u201csystem modernization journey\u201d \u2014 as Walker termed it \u2014 took root with the Taxpayer First Act (TFA). Congress mandated that the IRS would have to \u201creimagine\u201d the taxpayer experience \u2014 with 45 provisions that restructured the IRS and charted a path toward improving all manner of taxpayer interactions, including updating systems and \u00a0processes.\nTo modernize the intake of 5 billion information returns, the TFA mandated that the IRS build a new 1099 reporting system and with help from annual appropriations.\nLast year, the IRS debuted the Information Return Intake System (IRIS), an online 1099 filing system that allows filers to manually create and electronically file 1099 returns. However, the system is not yet ready to take in billions of information returns electronically. Businesses with hundreds to millions of returns to file need a more streamlined method.\nWith help from Inflation Reduction Act funding, the IRS has been working to build application programming interface (API) connectivity since last year. The benefits of modernizing this transfer of data include reduced errors and faster processing times.\n\u201cBeing able to click a button within an application and have it send that information directly is going to take a lot [of inefficiencies] out of that filing process,\u201d Walker said. In addition, the IRIS platform alerts filers in real time whether critical information is missing or invalid from the returns, including incorrect taxpayer identification numbers.\nFor corporations (especially the firms that make up Sovos\u2019 client base), and for financial services firms in particular, the IRS\u2019 efforts may have a ripple effect.\n\u201cWith respect to the IRIS system,\u201d she said, \u201cit\u2019s a huge shift for the industry.\u201d\nEnterprise accounting systems like SAP and Oracle and core payment and financial services platforms like Fiserv and FIS all have built-in programming for generating the current IRS 1099 file format. States require information return reporting, and most rely on the legacy FIRE (that\u2019s \u201cfiling information returns electronically\u201d) system, a network used for processing filing forms.\n\u201cOrganizations need to think about how the IRS is moving all of us over to IRIS and away from the legacy systems,\u201d including the already-in-place FIRE, said Walker, because IRIS requires different filing formats and processes.\nShe advised that companies should consider implementing a project team to help manage those operations and technology changes. The transition may be especially challenging if the IRS decides that it will not continue to support some of the information return types on FIRE, forcing a filer to file return information in both IRIS and FIRE to comply with annual filing requirements.\nIn the months ahead, she said, paperless initiatives will continue to be a top priority at the IRS, and there will likely be more legislation from Congress mandating more eFiling initiatives and technological\u00a0 innovations.\n\u201cYou have to think from an organizational perspective about how you\u2019re going to change over those systems and processes and procedures, and what those impacts are to everybody in between \u2026 and be prepared to respond on your timeline as an organization and not hopefully on the IRS\u2019,\u201d she said.\nThe post IRS Modernization Efforts Pose Challenges as Enterprises Embrace eFiling \u00a0 appeared first on PYMNTS.com.", "date_published": "2024-05-04T04:00:07-04:00", "date_modified": "2024-05-09T20:17:21-04:00", "authors": [ { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" } ], "author": { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" }, "image": "https://www.pymnts.com/wp-content/uploads/2024/05/taxes-IRS-businesses.png", "tags": [ "1099", "B2B", "B2B Payments", "Business Taxes", "commercial payments", "digital transformation", "eFiling", "Featured News", "Fire", "Internal Revenue Services", "IRIS", "IRS", "News", "PYMNTS News", "Sovos", "tax filing", "Taxes", "w-2", "Wendy Walker" ] }, { "id": "https://www.pymnts.com/?p=1913711", "url": "https://www.pymnts.com/taxes/2024/sovos-adds-indirect-tax-solution-for-global-enterprises/", "title": "Sovos Adds Indirect Tax Solution for Global Enterprises", "content_html": "Sovos\u00a0has launched a solution designed to modernize how companies meet global indirect tax obligations.
\nThe new Indirect Tax Suite is part of the\u00a0Sovos Compliance Cloud\u00a0and helps enterprises manage all their indirect tax obligations with governments, buyers, suppliers and consumers, the provider of compliance solutions said in a Tuesday (April 30) press release emailed to PYMNTS.\u00a0
\n\u201cWith the Sovos Indirect Tax Suite, companies can rely on the only comprehensive, global, always-on suite of integrated services in the industry to proactively manage compliance, benefiting from a single source\u00a0of truth for tax data,\u201d\u00a0Kevin Akeroyd, CEO\u00a0at Sovos, said in the release.
\nThis new solution from Sovos can be embedded into existing workflows of more than 70 of the most widely used enterprise resource planning (ERP) and transaction management systems and can be seamlessly connected to government tax authorities across the globe, according to the release.
\nIt provides automated tax rates and rule updates; adds transaction compliance to accounts receivable (AR) and accounts payable (AP) processes; and provides filing, reporting and insights, per the release.
\nThe Indirect Tax Suite is designed for companies operating across multiple markets or looking to enter new ones, Akeroyd said in the release. It helps them meet the challenges of variations in tax rates and rules, wide-ranging reporting cadences and different requirements for documenting and storing transaction data.
\n\u201cKeeping up with all of this is a tremendous drain on resources, especially when using multiple, disconnected point systems for different obligations or in different countries,\u201d Akeroyd said.
\nWith over 19,000\u00a0tax jurisdictions\u00a0worldwide, each undergoing constant changes, the complexity of staying compliant has never been higher, and businesses are being compelled to embrace digital solutions, Akeroyd told PYMNTS\u2019 Karen Webster in an interview posted Monday (April 29).
\n\u201cCompliance has traditionally been a cost center designed to avoid risk and ensure compliance,\u201d Akeroyd said. \u201cIt has not been a force for growth \u2014 but now, it\u2019s turning that corner, and it really can be a force for growth.\u201d
\nIn another recent move, Sovos said April 15 that it enhanced its\u00a0Sovos Partner Network\u00a0to make it easier for partners to access new opportunities in\u00a0technology, revenue and marketing. This program centers on the Sovos Compliance Cloud.
\nFor all PYMNTS B2B coverage, subscribe to the daily\u00a0B2B Newsletter.
\nThe post Sovos Adds Indirect Tax Solution for Global Enterprises appeared first on PYMNTS.com.
\n", "content_text": "Sovos\u00a0has launched a solution designed to modernize how companies meet global indirect tax obligations.\nThe new Indirect Tax Suite is part of the\u00a0Sovos Compliance Cloud\u00a0and helps enterprises manage all their indirect tax obligations with governments, buyers, suppliers and consumers, the provider of compliance solutions said in a Tuesday (April 30) press release emailed to PYMNTS.\u00a0\n\u201cWith the Sovos Indirect Tax Suite, companies can rely on the only comprehensive, global, always-on suite of integrated services in the industry to proactively manage compliance, benefiting from a single source\u00a0of truth for tax data,\u201d\u00a0Kevin Akeroyd, CEO\u00a0at Sovos, said in the release.\nThis new solution from Sovos can be embedded into existing workflows of more than 70 of the most widely used enterprise resource planning (ERP) and transaction management systems and can be seamlessly connected to government tax authorities across the globe, according to the release.\nIt provides automated tax rates and rule updates; adds transaction compliance to accounts receivable (AR) and accounts payable (AP) processes; and provides filing, reporting and insights, per the release.\nThe Indirect Tax Suite is designed for companies operating across multiple markets or looking to enter new ones, Akeroyd said in the release. It helps them meet the challenges of variations in tax rates and rules, wide-ranging reporting cadences and different requirements for documenting and storing transaction data.\n\u201cKeeping up with all of this is a tremendous drain on resources, especially when using multiple, disconnected point systems for different obligations or in different countries,\u201d Akeroyd said.\nWith over 19,000\u00a0tax jurisdictions\u00a0worldwide, each undergoing constant changes, the complexity of staying compliant has never been higher, and businesses are being compelled to embrace digital solutions, Akeroyd told PYMNTS\u2019 Karen Webster in an interview posted Monday (April 29).\n\u201cCompliance has traditionally been a cost center designed to avoid risk and ensure compliance,\u201d Akeroyd said. \u201cIt has not been a force for growth \u2014 but now, it\u2019s turning that corner, and it really can be a force for growth.\u201d\nIn another recent move, Sovos said April 15 that it enhanced its\u00a0Sovos Partner Network\u00a0to make it easier for partners to access new opportunities in\u00a0technology, revenue and marketing. This program centers on the Sovos Compliance Cloud.\nFor all PYMNTS B2B coverage, subscribe to the daily\u00a0B2B Newsletter.\nThe post Sovos Adds Indirect Tax Solution for Global Enterprises appeared first on PYMNTS.com.", "date_published": "2024-04-30T06:00:56-04:00", "date_modified": "2024-04-30T14:55:39-04:00", "authors": [ { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" } ], "author": { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" }, "image": "https://www.pymnts.com/wp-content/uploads/2024/04/b2b-taxes-accounting.png", "tags": [ "accounts payable", "accounts receivable", "B2B", "B2B Payments", "commercial payments", "compliance", "Kevin Akeroyd", "News", "PYMNTS News", "Sovos", "Taxes", "What's Hot", "What's Hot In B2B" ] }, { "id": "https://www.pymnts.com/?p=1890821", "url": "https://www.pymnts.com/taxes/2024/canada-considering-digital-services-tax-targeting-largest-tech-companies/", "title": "Canada Considering Digital Services Tax Targeting Largest Tech Companies", "content_html": "Canada\u2019s Parliament is considering a tax on digital services revenue that would impact the world\u2019s biggest tech companies.
\nThe legislation would cover companies\u2019 digital services revenue made from Canadian users, imposing a 3% tax on the revenue above 20 million Canadian dollars (about $14.5 million), Bloomberg\u00a0reported Wednesday (April 17).
\nIt would apply only to companies with annual worldwide revenue about $1.1 billion Canadian dollars (about $800 million), according to the report.
\nThis proposed tax would begin to apply to calendar year 2024, would cover taxable revenues back to Jan. 1, 2022, and is expected to raise about 7.2 billion Canadian dollars (about $5.2 billion) over five fiscal years, the report said.
\nBecause it would primarily hit U.S. firms, including\u00a0Alphabet\u00a0and\u00a0Meta, American lawmakers have called for trade reprisals if the legislation is passed, per the report. Business groups in both the U.S. and Canada have also spoken out against the bill.
\nThe Canadian government has noted that at least seven other countries \u2014 including the United Kingdom, France, Italy and Spain \u2014 already have similar taxes, according to the report.
\nFinance Minister\u00a0Chrystia Freeland has said that the Canadian tax would not be enacted if a global tax treaty through the Organization for Economic Co-operation and Development were implemented, but that treaty has not yet been implemented by the U.S., per the report.
\nThe move is expected to level the playing field for domestic companies competing against the\u00a0tech giants.
\nAmong the business groups opposing the legislation are the\u00a0American Chamber of Commerce in Canada, the\u00a0Canadian Chamber of Commerce\u00a0and the\u00a0U.S. Chamber of Commerce.
\nThe groups issued a\u00a0joint statement\u00a0in February saying that the tax would be retroactive, discriminatory and in contravention of prevailing international tax principles.
\n\u201cIn both Canada and the United States, the livelihoods of our workers and the prosperity of our citizens depend on the North American Trade and investment partnership,\u201d the joint statement said. \u201cAt such a sensitive time in the trade relationship, we hope Members of Parliament remain committed to multilateralism and the importance of a common approach to the North American marketplace.\u201d
\nThe post Canada Considering Digital Services Tax Targeting Largest Tech Companies appeared first on PYMNTS.com.
\n", "content_text": "Canada\u2019s Parliament is considering a tax on digital services revenue that would impact the world\u2019s biggest tech companies.\nThe legislation would cover companies\u2019 digital services revenue made from Canadian users, imposing a 3% tax on the revenue above 20 million Canadian dollars (about $14.5 million), Bloomberg\u00a0reported Wednesday (April 17).\nIt would apply only to companies with annual worldwide revenue about $1.1 billion Canadian dollars (about $800 million), according to the report.\nThis proposed tax would begin to apply to calendar year 2024, would cover taxable revenues back to Jan. 1, 2022, and is expected to raise about 7.2 billion Canadian dollars (about $5.2 billion) over five fiscal years, the report said.\nBecause it would primarily hit U.S. firms, including\u00a0Alphabet\u00a0and\u00a0Meta, American lawmakers have called for trade reprisals if the legislation is passed, per the report. Business groups in both the U.S. and Canada have also spoken out against the bill.\nThe Canadian government has noted that at least seven other countries \u2014 including the United Kingdom, France, Italy and Spain \u2014 already have similar taxes, according to the report.\nFinance Minister\u00a0Chrystia Freeland has said that the Canadian tax would not be enacted if a global tax treaty through the Organization for Economic Co-operation and Development were implemented, but that treaty has not yet been implemented by the U.S., per the report.\nThe move is expected to level the playing field for domestic companies competing against the\u00a0tech giants.\nAmong the business groups opposing the legislation are the\u00a0American Chamber of Commerce in Canada, the\u00a0Canadian Chamber of Commerce\u00a0and the\u00a0U.S. Chamber of Commerce.\nThe groups issued a\u00a0joint statement\u00a0in February saying that the tax would be retroactive, discriminatory and in contravention of prevailing international tax principles.\n\u201cIn both Canada and the United States, the livelihoods of our workers and the prosperity of our citizens depend on the North American Trade and investment partnership,\u201d the joint statement said. \u201cAt such a sensitive time in the trade relationship, we hope Members of Parliament remain committed to multilateralism and the importance of a common approach to the North American marketplace.\u201d\nThe post Canada Considering Digital Services Tax Targeting Largest Tech Companies appeared first on PYMNTS.com.", "date_published": "2024-04-17T19:22:37-04:00", "date_modified": "2024-04-17T19:22:37-04:00", "authors": [ { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" } ], "author": { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" }, "image": "https://www.pymnts.com/wp-content/uploads/2024/04/Canada-Parliament.jpg", "tags": [ "Alphabet", "American Chamber of Commerce in Canada", "Big Tech", "canada", "Canadian Chamber of Commerce", "Legislation", "Meta", "News", "PYMNTS News", "Taxes", "u.s. chamber of commerce", "What's Hot" ] }, { "id": "https://www.pymnts.com/?p=1886826", "url": "https://www.pymnts.com/taxes/2024/sovos-enhances-connector-marketplace-amid-tax-compliance-changes/", "title": "Sovos Enhances Connector Marketplace Amid Tax Compliance Changes", "content_html": "Tax software firm\u00a0Sovos\u00a0has debuted an enhanced version of its Connector Marketplace.
\nThe launch,\u00a0announced\u00a0Wednesday (April 10), makes it easier for customers and partners to connect to Sovos\u2019 Compliance Cloud.\u00a0
\nThese connectors help companies implement Sovos\u2019 tax compliance and regulatory reporting solutions into their enterprise financial systems, doing away with compatibility issues and ensuring data security and always-on compliance, the company said in a news release.\u00a0
\nSovos noted that government mandates around the world are forcing its customers and partners to meet new compliance standards, which can be tough for businesses that are running disparate systems and may not have the resources to develop connectors and APIs.\u00a0
\n\u201cCustomers need the ability to connect to our solutions without significant development cycles to quickly meet changing business requirements,\u201d said company CEO Kevin Akeroyd. \u201cThis is a core tenet to everything we do at Sovos.\u201d
\nPYMNTS discussed the tax compliance changes facing businesses last month in a conversation with\u00a0Steve Sprague, chief strategy and product officer at Sovos.
\nAs he told PYMNTS, there was a time when corporate back offices were content to use legacy accounting systems and may have assumed that those systems will extract a \u201cbig enough file\u201d to cover all of the diverse markets and tax reporting requirements around the world \u2014 from the U.S. to Brazil to Germany \u2014 depending on the scale of the company.
\nBut now, he added, these organizations must deal with a third party operating \u201cinside\u201d the company: the government.
\nOne of the most notable trends in tax policy, Sprague said, has been the movement of governments toward transactional collection via continuous transaction controls (CTCs), especially in Latin America and Europe. That\u2019s a notable change, he added, from what\u2019s traditionally been seen before, primarily in the U.S.
\n\u201cMany individuals,\u201d Sprague said, \u201cviewed tax as something that happens on a quarterly basis or an annual basis. But around the world, it\u2019s been moving from not only quarterly, but monthly \u2026 now it\u2019s in real time.\u201d\u00a0
\nGovernments are collecting companies\u2019 invoices in real time, gleaning insight into those enterprises\u2019 billing and accounts payable processes.
\nAlso last month, Sovos teamed with\u00a0PwC\u00a0in Belgium to streamline the adoption of\u00a0eInvoicing among businesses.
\nThis partnership establishes a joint business relationship designed to improve the implementation of eInvoicing and eReporting solutions, the companies said.
\n\u201cAs companies navigate an increasingly interconnected and dynamic marketplace, the need for a more integrated eInvoice process has never been more crucial,\u201d\u00a0Ellen Cortvriend, partner at PwC in Belgium, said in a news release.
\nThe post Sovos Enhances Connector Marketplace Amid Tax Compliance Changes appeared first on PYMNTS.com.
\n", "content_text": "Tax software firm\u00a0Sovos\u00a0has debuted an enhanced version of its Connector Marketplace.\nThe launch,\u00a0announced\u00a0Wednesday (April 10), makes it easier for customers and partners to connect to Sovos\u2019 Compliance Cloud.\u00a0\nThese connectors help companies implement Sovos\u2019 tax compliance and regulatory reporting solutions into their enterprise financial systems, doing away with compatibility issues and ensuring data security and always-on compliance, the company said in a news release.\u00a0\nSovos noted that government mandates around the world are forcing its customers and partners to meet new compliance standards, which can be tough for businesses that are running disparate systems and may not have the resources to develop connectors and APIs.\u00a0\n\u201cCustomers need the ability to connect to our solutions without significant development cycles to quickly meet changing business requirements,\u201d said company CEO Kevin Akeroyd. \u201cThis is a core tenet to everything we do at Sovos.\u201d\nPYMNTS discussed the tax compliance changes facing businesses last month in a conversation with\u00a0Steve Sprague, chief strategy and product officer at Sovos.\nAs he told PYMNTS, there was a time when corporate back offices were content to use legacy accounting systems and may have assumed that those systems will extract a \u201cbig enough file\u201d to cover all of the diverse markets and tax reporting requirements around the world \u2014 from the U.S. to Brazil to Germany \u2014 depending on the scale of the company.\nBut now, he added, these organizations must deal with a third party operating \u201cinside\u201d the company: the government.\nOne of the most notable trends in tax policy, Sprague said, has been the movement of governments toward transactional collection via continuous transaction controls (CTCs), especially in Latin America and Europe. That\u2019s a notable change, he added, from what\u2019s traditionally been seen before, primarily in the U.S.\n\u201cMany individuals,\u201d Sprague said, \u201cviewed tax as something that happens on a quarterly basis or an annual basis. But around the world, it\u2019s been moving from not only quarterly, but monthly \u2026 now it\u2019s in real time.\u201d\u00a0\nGovernments are collecting companies\u2019 invoices in real time, gleaning insight into those enterprises\u2019 billing and accounts payable processes.\nAlso last month, Sovos teamed with\u00a0PwC\u00a0in Belgium to streamline the adoption of\u00a0eInvoicing among businesses.\nThis partnership establishes a joint business relationship designed to improve the implementation of eInvoicing and eReporting solutions, the companies said.\n\u201cAs companies navigate an increasingly interconnected and dynamic marketplace, the need for a more integrated eInvoice process has never been more crucial,\u201d\u00a0Ellen Cortvriend, partner at PwC in Belgium, said in a news release.\nThe post Sovos Enhances Connector Marketplace Amid Tax Compliance Changes appeared first on PYMNTS.com.", "date_published": "2024-04-10T16:53:01-04:00", "date_modified": "2024-04-11T22:37:54-04:00", "authors": [ { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" } ], "author": { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" }, "image": "https://www.pymnts.com/wp-content/uploads/2024/04/tax-compliance-Sovos.jpg", "tags": [ "B2B", "B2B Payments", "commercial payments", "compliance", "Compliance Cloud", "compliance software", "Connector Marketplace", "News", "PYMNTS News", "Sovos", "tax compliance", "Taxes", "What's Hot", "What's Hot In B2B" ] } ] }