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Wednesday, January 24, 2024 - 12:42

Earlier in January the IRS announced new enforcement pushes for 2024. If you are in Accounts Payable or Tax at a medium-large sized organization or a CPA advising such an organization then please beware.

Thursday, January 11, 2024 - 14:04

Yesterday (January 10, 2024), the National Taxpayer Advocate (Erin Collins) issued her annual report to Congress on the IRS' performance in key metrics like tax support. Unfortunately, there was not much good news.

During 2023 IRS employees answered only 35% of all calls received. For the full fiscal year, IRS employees answered 29% of all calls received. In particular, the report states that service for tax professionals was below average, with only 34% of calls answered in FY 2023. Those that actually had their call picked up only did so after onerous wait times:

Monday, October 16, 2023 - 19:05

We just spent the past two months reminding our readers, listeners, and subscribers of the dangerous liabilities that can arise from negative interactions with the IRS. These include things like CP2100 "B" Notices, IRS Form 972-CG Proposed Penalty Notices, and dealing with audits.

Monday, September 18, 2023 - 12:17

Last week the IRS announced the hire of 3,700 new employees specifically to target compliance (featuring 1099/1042-S related compliance in particular).

Worse yet, the IRS is specifically looking to hire experienced accountants. As we all know, the more relevant experience of a new hire then the quicker they can ramp up into becoming a formidable examiner. The IRS states that "the hiring will be for higher-graded revenue agents, which are specialized technical positions that generally focus on audits."

Monday, July 17, 2023 - 14:22

In June the IRS rolled out a new draft Form W-8EXP. This month's subscriber article goes into greater detail on that development. But it is expected to be only the first of many changes to come this summer and fall. It appears the IRS intends to update all Forms W-8 over the coming months as well as the Form 1042-S.

That's only part of the changes though (and this is the biggie) - the Form W-9 is apparently slated for a new version. Note that the W-9 has not been updated since October of 2018. That's a really long-time, folks! Changes are long overdue.

Monday, April 17, 2023 - 11:20

On April 5, 2023 the IRS released its Strategic Operating Plan for the coming years. This plan contains a number of initiatives, but one in particular is of relevance to Accounts Payable and Tax Departments at large organizations. As part of Objective Number Three of this Strategic Plan the IRS is planning to dramatically increase the resources assigned to tax information reporting compliance at large organizations such as large partnerships and corporations.

Monday, January 16, 2023 - 14:09

On January 11th National Taxpayer Advocate Erin M. Collins released her annual report to Congress detailing IRS activities (this report is for 2022). The big takeaway is that if you think you can call the IRS and get help with your 1099 filing questions, then think again.

Wednesday, August 17, 2022 - 17:07

On August 16, 2022 the Inflation Reduction Act was signed into law. It does a number of things, but for the purposes of Accounts Payable and Tax the big line item is the $80 billion for the IRS. Let's have a look at what that means for you as you get ready for 1099 filing season.

Monday, June 27, 2022 - 12:29

Late in May the IRS released it's annual Data Book. This one detailing IRS activities during the fiscal year that ended on September 30, 2021 (Fiscal Year 2021). The results indicate that businesses and other medium/large sized organizations need to remain vigilant in their 1099 compliance and reporting efforts.

Monday, July 18, 2022 - 12:18

On May 10th The Treasury Inspector General for Tax Administration released its audit report on IRS compliance efforts. If you choose not to read the 35 page report then we won't blame you. But to summarize, if you are in Accounts Payable or Tax then you don't want to take your foot off the 1099 due diligence pedal.