Slidedeck from webinar with APP2P Network.

1. 1099 Best Practices for the
AP Professional
A Quarter-by-Quarter Review

2. About Your Presenters
Clark Sells is a Senior Product Manager with Sovos Compliance.
He is experienced implementing, building, and maintaining tax
software for filers of 10 series forms. Over the last 8 years Clark has
served as liaison to state and federal governments specializing in
emerging compliance items. Early in his career he worked in various
treasury roles within Bank of America and Ameriprise Financial.
Stacy Nagassar is the Director of Compliance Services and
oversees our Tax Information Managed Services, Withholding
Management Service, Print Services and Implementation Services at
Sovos Compliance. Stacy has been with Sovos Compliance for four
years and has worked in tax related fields for 14+ years. Stacy has her
Master of Art’s degree from Saint Mary’s University and her Bachelor
of Art degree from the College of Saint Benedict.

3. About Your Presenter
Judy Bicking is a 27 year veteran of Johnson & Johnson.
Her career has been focused on Procure-2-Pay, Order-2-Cash,
and developing Shared Service Centers in the U.S. and Europe;
earning high recognition for process improvement and major
cost savings. She led the first department to earn IOFM AP
Departmental Certification designation.
Today she is a Public Speaker, does consulting in O2C and P2P
and participated as co-founder and played a major role in
writing and conducting certification training in these fields.
She also owns and operates a retail department store along
with her passion in doing mission work at home and abroad.
3

4. TAX INFORMATION
REPORTING

5. Agenda
• Introductions
• Seasonal Challenges
• TY2017
• Best Practices

6. 3 Things
1. Who and what Sovos Compliance is
2. An understanding of current and future
challenges facing this industry
3. Ideas on how you can improve your own
reporting process

7. Who is Sovos

8. Our Clients

9. How we Serve them
450 Million 17.5% 10.7 Million
1042-S 1099-C 1099-PATR 5498 480.6A T4
1098 1099-CAP 1099-Q 5498-ESA 480.6B T4A
1098-E 1099-DIV 1099-R 5498-SA 480.6C T4ANR
1098-Q 1099-INT 1099-S W2/W2C 480.7 T5
1098-T 1099-K 1099-SA W2G 480.7A T5008
1099-A 1099-MISC 3921 W4-P 480.7C RL-3
1099-B 1099-OID 3922 W-9 499R2 RL-18

10. Tax Year 2016
Season in Review
Expedited due dates = less time

11. 2017
What’s to Come
Increased penalties

12. Penalty Tiers
$50 per form Within 30 days of original due date
$100 per form 31 days after to August 1st
$260 per form After August 1st

13. 5 REPORTING
RECOMMENDATIONS

14. Just when you thought 1099
was complete for the year...
• Traditionally AP waits until October or
November to begin the thought process
for 1099 & 1042 processing.
– Some start January, after the year-end push
• In reality to avoid penalties and accurately
comply with regulations, you should have
tasks that are performed through the year.

15. 1. Year-Round Process

16. Paper vs. “e” Statements
• It is a fact that anytime you can eliminate
paper it reduces cost and errors.
• What is the process and benefit to submit
E-statements?

17. 2. E-statements
• Reduced Costs
• Decrease in call volume
• Increased Customer
Service Levels
• 24x7 Delivery

18. Federal Form Requirements
• Is there any other way to reduce cost and
penalties?

19. 3. Apply Federal Limits
• Reduce Forms Sent
• Reduce Penalties
• Reduce Corrections
Forms
1098
1099B
1099C
1099CAP
1099DIV
1099G
1099INT
1099K
1099MISC
1099R
More…

20. Supporting Documentation
• Are there any best practices to include a
note or message to the recipient directly
on the form instead of sending a cover
letter?

21. 4. Print Notes/Correspondence
• Examples:
• This is important tax information and is being furnished to the IRS by
ABC Company. If you are required to file use this information as
your official tax document. For questions about this form contact at
1-800-XXX-XXXX
• This statement is being provided as a result of the royalty payment
you received from XYZ Property management. The tax information
will be filed with the IRS on 3/31/2017 please contact us with any
amendments to this information prior to that date

22. How to Avoid Withholding
• The IRS law says that if a supplier doesn’t
supply their tax ID number, you must
withhold the tax.
• This was a major issue:
–Time, accuracy and cost to withhold and
submit the taxes
• Control at VM file level: No tax id, No Pay
–Company Policy, not IRS regulation

23. B-Notices
• Rather than being reactionary, which usually
requires rework, it is much better to put into
place procedures that eliminate errors and
rework

24. 5. TIN/Name Matching
• Before B-Notices
• Upon Receipt of a W9
• Before issuing a form

25. Best Practices
• To avoid penalties and most importantly to
serve as a business partner to your company:
– Now is the time (March) to analyze:
• What went right
• What went wrong (missing tax ID’s, amounts in
proper block, missed deadlines)
• Work with an expert to implement a process
that will ensure compliance with all current
regulations

26. In Summary
1. Who and what Sovos Compliance is
2. An understanding of current and future
challenges facing this industry
3. Ideas on how you can improve your own
reporting process

27. Thank You!
Questions after the event? E-mail webinars@iofm.com
We hope to see you at a future AP & P2P Network event! For upcoming events please visit
www.app2p.com.