Posts from April, 2011

President Obama Signs Repeal of Expanded 1099 Reporting Requirements

Friday, April 15th, 2011

President Obama on Thursday signed into law a bill repealing the expanded 1099 reporting requirements from the 2010 health care law.  The Senate passed the repeal bill in an 87-12 vote on April 5 after the House passed the bill in March.

The law repeals the expanded 1099 reporting requirements that were included in the funding provision of the 2010 health care law, which required all for-profit corporations issue 1099 forms to vendors from whom they purchased over $600 of goods or services in a tax year and was scheduled to go into effect for all payments made after December 31, 2011.

The repeal comes after months of debate about the impact of the reporting requirement on small businesses and how to cover the cost for the 1099 repeal, which is estimated at nearly $22B over the next 10 years.

“Today, I was pleased to take another step to relieve unnecessary burdens on small businesses by signing H.R. 4 into law,” reads the president’s signing statement. “Small business owners are the engine of our economy and because Democrats and Republicans worked together, we can ensure they spend their time and resources creating jobs and growing their business, not filling out more paperwork. I look forward to continuing to work with Congress to improve the tax credit policy in this legislation and I am eager to work with anyone with ideas about how we can make health care better or more affordable.”

So what does this mean for companies and their 1099 reporting?  Was expanded 1099 reporting a passing fad?  Actually, discussions around expansion of 1099 reporting requirements date back to the Bush administration and are aimed at better tracking business expenditures, earnings, and tax liability.  In order to ensure your company is ready to meet current 1099 reporting requirements, as well as future changes, the safest bet is to make sure you have the policies, processes, and systems to ensure up-to-date supplier tax information.

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Posted in 1099 Reporting, Tax ID Numbers | No Comments »

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Lavante Thanks the ITLG for Recognizing Top Irish Leaders in Silicon Valley

Monday, April 11th, 2011

Last week, Lavante’s CEO, Joe Flynn, was honored by the Irish Technology Leaders Group (ITLG). It is a well-deserved honor for him as both a technology innovator and as a proud descendant of the Emerald Isle. Both of Joe’s grandparents took boat rides across the Atlantic and settled in Newark NJ in the 1920’s. Although the pair grew up only 20 miles away from each other it took an overseas voyage and a neighborhood dance for them to finally meet. Joe’s grandparents were certainly innovators for their time and they were fearless. Their business, a parking lot and body shop combo, started as a large patch of asphalt. The first structure that they ever built on that property was comprised of an upside down barge serving as a roof over hand-laid cinderblock walls. The design, which housed up to 14 cars, was of their own creation and utilized materials that were available and affordable.

The same innovation and fearlessness that was present in Joe’s Irish ancestors are apparent in him today. Joe’s achievements in technology are a simple matter of identifying an opportunity and being undaunted in the pursuit of his goals. Joe grew up in the recovery audit industry and recognized a massive opportunity for large corporations to recover credits that are sitting unrecognized at their suppliers. He also realized that the manual processes used in traditional recovery audits were not going to scale to support an ongoing, full-scale review of supplier AR records, leaving a significant percentage of these dollars undiscovered. Joe founded Lavante (originally Audit Solutions) in 2001 with the vision to build the processes, technology and applications to help companies find these untapped dollars and drive them to their bottom line. From Joe’s original vision, Lavante has grown to not only a well-respected solution but one that has fundamentally changed the recovery industry, with solutions that help Fortune 1000 companies across industries find more dollars, with near immediate results.

Joe was just one worthy recipient in the ITLG ceremony, surrounded by a many others who have all descended down from a proud and hard working culture. Lavante thanks the ITLG for creating this award, for shining a well-deserved spotlight on Irish and Irish-American leaders, and for recognizing our fearless leader Joe.

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Posted in Industry Associations, Lavante, Recovery Audit | No Comments »

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Lavante Awarded The Industry’s First Statement Audit Patent

Tuesday, April 5th, 2011

Last week, we announced that Lavante was awarded a new patent by the U.S. Patent and Trademark Office. Patent Number 7,908,188 was awarded on March 15 and covers Lavante’s statement audit processes, technology and software application. This is a huge step for Lavante and a huge step in fundamentally changing the recovery auditing industry.

I’ve been working in the recovery auditing industry for over 16 years and I recognized an opportunity for large corporations to recover credits that are sitting out at their suppliers. I also realized that the manual processes used in traditional recovery audits were not going to scale to support an ongoing, full-scale review of supplier AR records. I founded Lavante in 2001 to build the processes, technology and application to automate the end-to-end statement auditing process.

Today, we’re the only automated solution for statement auditing in the market and this patent is an amazing validation of our original vision, our execution, and our technology leadership. I am so proud of the company and team that we’ve built. We’re experiencing record growth in our customer base and revenue, while partnering with our customers across industries help them find ongoing dollars out at their suppliers. At the same time, we help our customers improve their processes, data and relationships with their suppliers.

Our future vision gets even more exciting. We’ve taken our experience with supplier communication and management and we’ve expanded out product footprint to include Supplier Information Management (SIM). With a single platform for both recovery auditing and supplier information management, we’re offering the market a unique, self-funding combination for supplier AR reconciliation and quality supplier data. No one else in the industry provides this combination!

We recently closed a round of funding led by SAP Ventures. Here is how our new board member, Andreas Weiskam, Managing Director, SAP Ventures, describes our new patent:

“Lavante is filling a critical technology gap that has existed between companies and their suppliers. The ability to automate supplier communication and AR reconciliation is a game-changer for large corporations. The award of this patent validates Lavante’s visionary approach to technology and processes to the audit recovery market.”

I welcome your thoughts about this exciting development and how you see it will move the statement audit and recovery industry forward.

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Posted in Lavante, Recovery Audit, Vendor Statement Audit | No Comments »

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US Senate Passes the House’s 1099 Repeal Bill, Goes Next to the White House

Tuesday, April 5th, 2011

Today, the U.S. Senate passed the House’s 1099 repeal bill, H.R. 4, in an 87-12 vote.  The bill will go directly to the White House where President Barack Obama will have the opportunity to sign or veto the bill.

The 1099 reporting requirements is part of funding provision of the 2010 health care law. It required all for-profit corporations to issue 1099 forms to vendors from which they purchased over $600 of goods or services in a tax year, and is scheduled to go into effect for all payments made after December 31, 2011.

The Senate vote comes after months of debate about the impact of the reporting requirement on small businesses and how to cover the cost for the 1099 repeal, which is estimated at nearly $22B over the next 10 years.

Sign up for the Lavante blog today to stay on top of the 1099 repeal or check out our 1099 reporting center.

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Posted in 1099 Reporting, Tax ID Numbers | No Comments »

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