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.

That continued attention to 1099 due diligence is important for a number of reasons. Not leas of which being that the IRS continues to be aggressively pursuing enforcement efforts. Overall, net IRS revenue obtained through enforcement by the collection function equaled almost $60 billion in 2021. This means that it has been four straight years the IRS has exceeded $50 billion in enforcement revenue clawbacks from organizations just like the one you may work for in Accounts Payable/Tax or perhaps you represent as a CPA. 

Stay vigilant and know that we stand ready to help you with all of your 1099/1042-S compliance and reporting responsibilities so that you don't become part of those grim enforcement statistics. To that end, please note that late next month IRS proposed penalty notices will start going out. This will be followed by another round of B-Notices beginning in September so don't let the dog days of summer lull you into complacency!