I was happy to see the article by Diane Sears in the latest issue of Financial Operations Matters, Is 1099 Issue Dead or just Resting? which focused on the continuing 1009 reporting dilemma. Although the heated debate over this issue has died down after the repeal of the reporting requirements tied to the health care legislation, Diane brings up critical issues that every enterprise should keep in mind about this continuing challenge. She notes in the article: “Industry watchers say financial operations professionals can expect to see expanded 1099 reporting requirements pop up in other bills designed to raise federal tax revenue – and soon.”
One of those industry watcher’s advice comes from a Lavante’s partners, Convey Compliance Systems, a firm that provides tax reporting software and services. Their spokesperson, Troy Thibodeau, noted that the entire 1099 reporting process had largely been overlooked by many organizations, leading to low adoption of the automation that would deliver added efficiencies and cost reductions. This attention deficit all changed when the healthcare reform act shined a very bright light on the operational and process problems that organizations face in the 1099 reporting area.
My colleague at Lavante, Sherry DePew added her expertise to the article, noting: “The majority of the people we talk to say this has given them time to get prepared. Everyone pretty much knows this is coming.”
The article expressed complete agreement that the expansion of 1099 reporting is inevitable. To best prepare to meet future requirements, companies should look to automate the process and to implement repeatable processes, both as a way to effectively manage the entire 1099 reporting process now and in the future.
For more information, click here read the entire article by Diane Sears. And, let us know what your thoughts are about this issue and how you are planning to prepare for possible changes.