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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.

Have a 1099 question for the IRS? Good luck with that. You have only a one in four chance of the IRS even answering that call, and if they do wait times average over a half hour. From there, the odds of getting an experienced tax attorney or CPA online handling your specific fact and circumstances are near non-existent. Furthermore, if you are calling at any time of the year other than from January to March you can even forget that (as the IRS has repeatedly stated it does not provide tax support outside of filing season).

Late last month a California Court ruled that a 2020 ballot measure that exempted ride-share and food delivery drivers from a state labor law is unconstitutional. 

This ruling is grounded on strong precedent. As noted by the judge this is because the ballot measure unreasonably "limits the power of a future legislature to define app-based drivers as workers subject to workers' compensation law". This not only makes the entire measure unenforceable, but it is also likely to be upheld upon appeal.