New InfoBrief Highlights Increased Focus on Payments and Withholding to Gig, Contractors and MLM Workers
Summary
There is currently a federal tax gap of more than $1 billion dollars in the U.S. Over the past 12 months the Internal Revenue Service (IRS) and state regulatory agencies have been focusing on the gig, technology and multi-level marketing (MLM) industries to help close this gap because of their high payment volumes to non-employees and independent contractors, which results in reportable income. “We are witnessing an important shift in the way regulatory authorities track and pursue tax revenue generated through non-traditional jobs,” said Wendy Walker, solution principal, Sovos. “From what we witnessed in 2020 regarding the 1099-NEC, the only reasonable expectation is that the IRS and states will continue to increase oversight, and it’s important for industries with a high number of these forms—1099-NEC and 1099-K—to have withholding and information reporting processes in place that ensure their compliance.” This IDC InfoBrief provides an in-depth review of why increased oversight is causing compliance issues for organizations with higher volumes of these payments and provides guidance on what they can do to remain compliant with IRS and state tax requirements. Companies need to have a strategy in place now.” Get your complimentary copy of the IDC InfoBrief now to ensure your gig, tech or MLM organization remains compliant with its tax reporting and withholding obligations. Its SaaS products and proprietary Sovos S1 Platform integrate with a wide variety of business applications and government compliance processes.
