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.

The goal here is to close that gap between what the Federal Government takes in and what it is owed. The IRS see's increased enforcement regarding 1099 compliance and reporting as a key component in that goal. A subset of Objective Three is Initiative 3.2 which explicitly is seeking to increase the audit rate of corporations and Initiative 3.3 directed at large partnerships.

As part of these efforts the first wave of specialists is being hired and onboarded. This rise in staffing is expected to be completed this year - all toward increasing compliance coverage rates for large corporations, partnerships, and other such organizations. If you are concerned about your organization's 1099 compliance and reporting policies or lack an effective means of answering your 1099 tax questions, then please note that we stand ready to help.