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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."

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.

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.

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.

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.

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.

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.

In March the IRS announced it is hiring a staggering 10,000 new workers. In addition, the current administration's budget request seeks to provide $14.3 billion to the Treasury Department, including $12.6 billion devoted to the IRS. Those monies would result in the largest single-year funding increase for the IRS in over twenty years! 

Last month National Taxpayer Advocate Erin M. Collins released her annual report to Congress detailing IRS activities in 2021. The big takeaway is that if you think you can call the IRS and get help with your 1099 filing questions, then think again.

Many of you might have missed the fact that on December 27th the National Labor Relations Board (NLRB) announced that it was reconsidering the concept of who is really an independent contractor, and who is really an employee. This follows on the heels of a memo where the NLRB’s general counsel asked the NLRB's various offices to submit cases to her that raised the question of whether the very act of misclassifying workers as independent contractors was itself a violation of the National Labor Relations Act.