LOS ANGELES, Calif., July 7, 2015 (GLOBE NEWSWIRE) -- via PRWEB - TINCheck (http://www.TINCheck.com), IRS Compliance (http://www.IRSCompliance.org) and 1099 Pro (http://www.1099pro.com) now work together to offer a centralized solution in response to recent IRS legislation that increases the cost of incorrectly reporting 1099, W-2, and 1094/1095 Health Care ACA information returns. IRS Compliance offers training via webinar, penalty abatement, and managed services; TINCheck provides real-time list validation (i.e TIN/Name, SSN Lookup, OFAC, DMF…) through its website or via a web-service API; and 1099 Pro completes the offering with its Corporate Suite software.
The legislation update, which was part of the June 29 Trade Preferences Extension Act, can be found in the "Offsets" section where Internal Revenue Code, sections 6721 and 6722, are updated to provide for an increase in the per record penalty as well as an increase in the maximum annual potential penalty. What was once a $100/record penalty with a $1,500,000 annual cap has become a $250/record penalty with a $3,000,000 annual cap. Moreover, it appears that that the penalty update also encompasses the new 1094/1095 Health Care ACA forms – even though sections 6721 and 6722 traditionally relate only to 1099 & W-2 information returns. So how should companies adapt to their increase in potential liability? Director of Compliance at 1099 Pro, Michael Stewart, offers a three-pronged solution.
"First and foremost, it is imperative that companies understand the newly legislated provisions and their potential consequences." As a result, IRS Compliance has developed a Penalty Abatement Webinar that will allow attendees to familiarize themselves with updated legislation and penalty abatement techniques. Secondly, companies must take increased measures to ensure that new and existing vendors have been properly validated before filing their 2015 information returns. Accordingly, TINCheck offers a bulk TIN validation process for existing TIN/Name combinations while also offering real-time validations through the TINCheck website or an integrated web API – all of which provide multiple list validations, simultaneously.
"The beauty of TINCheck is that customers can validate existing databases against the majority of government lists, in a single submission, while also implementing forward-looking, front-end, compliance measures for new vendor setup", says Mr. Stewart.
Lastly, it is crucial that companies adopt a mindset that information reporting and processing has become a year-round responsibility. IRS support and IRS penalty abatement will become more difficult than ever as the IRS nears record lows in funding – further stretching an already understaffed organization. In response, companies should research complete information reporting solutions - such as 1099 Pro's Corporate Suite Software in conjunction with IRS Compliance's Managed Services. The Corporate Suite software provides the back-end & easy to navigate user-interface while Managed Services provides the much needed compliance and process support for companies that want to get it right the first time around. Examples of such managed services are: data imports, data edits, posting/balancing, customized reports, payee statements, federal and state originals and corrections, B-Notices, penalty notices, form W-8/W-9 certification and validation, regulatory support, and regulatory training.
Additionally, IRS Compliance, 1099 Pro, and TINCheck have teamed up to provide an annual regulatory tax & accounts payable conference - which will take place at Disneyworld's Yacht & Beach Club from September 13th through September 16th. The conference speakers include industry leaders, ex-IRS officials, and software/technical experts. Moreover, the conference allows attendees to meet company officials in person while also providing in-depth workshops on IRS legislative changes and their consequences. For more information, simply visit 1099 Pro & IRS Compliance Regulatory Tax & Accounts Payable Conference.
Thus, the 2015 tax year is shaping up to be one of the harsher information reporting environments of recent years and companies would do well to implement complete tax reporting solutions before resources are stretched too thin.
ABOUT 1099 Pro, Inc.
1099 Pro, Inc. has been in business for over 20 years and files 10% of the information returns filed in the United States each year. 1099 Pro software is available for 1094 / 1095, 1099, W-2, 1042-S, & FATCA 8966 tax forms and can process printing, eFiling, & corrections.
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