The Treasury Inspector General for Tax Administration recently published its long awaited report highlighting trends in compliance activities. And accounts payable and tax departments at mid-size and large-organizations in particular should be worried.

According to the report (numbered 2016-30-004) total dollars received and collected by the IRS increased for the fourth straight year to $3.1 trillion (a 6.8% increase) in FY 2014. In addition, enforcement revenue collected rose from $53.3 billion in FY2013 to $57.1 billion in FY 2014. What is more interesting is that tax return filings remained steady.

What this means is that in spite of battling declining budgets (which have seen the IRS cut important tax question services for those filers of Forms W-2, 1099, and 1042-S) enforcement revenue continues to rise. On top of that and as of January 1, 2016 penalties are being doubled for Filers of Forms W-2, 1099, and 1042-S!

Couple that to the full roll-out of FATCA and its new reporting and compliance requriements and this upcoming filing season is going to be one of the toughest seen in recent years. This is not the year to be filing blind without knowing the answers to important questions regarding properly completing IRS Forms 1099/1042-S. If you are in need of accurate answers that will help you do your job more effectively then please let us know. Our tax attorneys would be happy to be of assistance.