It is that time of year. IRS Notices 972CG, proposed penalty notices, are out. The IRS typically starts mailing the notices in late July. The process continues through August. How do you “qualify” for a 972CG? Try filing 1099s late. Or fail to file at all! Penalties are also assessed for filing 1099s in the wrong … Responding to IRS Notice 972CG
Have you ever received an invoice from a vendor you’ve never heard of? Of course. You check the master file, but it’s not there. And it’s due in 30 days. Just kidding—it’s due by the end of the week. Last week. If you’re lucky, the buyer’s name is noted on the invoice. Or maybe the … Help! The Vendor Onboarding Challenge
If this were Jeopardy, the category would be “Initial New Vendor Engagement,” and the $100 category clue would be “53 percent of organizations send new vendors this.” Are you ready to buzz in on that one? Correct response: “What is a W-9 form?” Good! You’re on the board. For the $200, answer: “Just 22 percent … Reaching Out – How Companies Engage New Vendors
Non-Compliance Risk in 1099 Reporting Are you a gambler? Do you look forward to a conference in Las Vegas so you can get in a little action? How about when it comes to IRS compliance? No doubt it would be a thrill not to hear from the IRS if you veer widely outside of the lanes of … What Are the Odds?
Your checklist for ensuring vendor onboarding compliance and certification Companies’ vendor interactions are surrounded by a number of compliance requirements that add complexity to the procure-to-pay process and the supposed simplicity of paying the bills. A few vendor-related tasks that are driven by compliance requirements must be completed in the initial stages of a vendor relationship. These … Compliance Responsibilities in Vendor Set Up
What do errors cost? In baseball, sometimes the game. What about in business, in particular data errors? A quality management concept developed by G. Loabovitz and Y. Chang quantifies the cost of error prevention versus remediation versus failure. It’s the 1:10:100 rule. The authors determined hidden costs of errors expand exponentially. In their studies they … Old Adages, Modern Rule
There are risks inherent in bringing in new vendors to your organization that must not be overlooked. There is a continuum of risk according to types and consequence of products or services. But even office supply vendors should be validated, as victims of printer-toner scams can attest. Supply chain and corporate procurement researcher Jonathan Webb, … Reducing Vendor Risk in Onboarding
It’s the end of October and there are just two months left in the year. In terms of calendar-related responsibilities, your unclaimed property reporting and escheatment should be done. Now you’re looking towards year-end, and right around that corner, 1099 reporting (with its January 31st deadline). That means it’s time to check on the state … You Can’t Always Get What You Want – Or Can You?
Any U.S. business issuing payments of U.S. source income to either U.S. payees or foreign payees is required to solicit and obtain valid certification of the payee’s TIN, name, residency and status as required in the manner set forth by IRS regulations. Each payer is required by the IRS and many state tax regulations to … Are You Certifying Your Payees?
Get It Right or Face Fines As most readers of this newsletter will know, the deadline for reporting 1099-MISC forms that report non-employee compensation (NEC) in box 7 is now January 31 (for both paper and electronic filing). It is no longer February 28th for paper or March 31st for electronic filing, as in the … 1099-MISC NEC and Non-NEC Income Separation for 2019
IRS TIN Matching Often with a task or project comes the temptation to shortcut it. This is especially true if the task involves an “extra” step to ensure we’ve got it right when we think we already have what we need. The temptation creeps in when that extra step to double check seems a mundane … Do It Right, or Do It Over