5 Sneak Peek Strategies for a Superior Tax Season

Transcription

1 5 Sneak Peek Strategies for a Superior Tax Season From

2 Rick Roddis, President Rick Roddis is President of ComplyRight Distribution Services, a Division of ComplyRight, Inc. a provider of cutting edge compliance products and programs for businesses. Rick has had a rich career that began as an insurance underwriter but quickly moved into sales, operations and management roles at different companies that partnered with Intuit, Staples, Office Depot and others. In 2008, he became President of TFP Data Systems, the leading manufacturer of 1099, W-2 and ACA tax forms, envelopes and software. efile4biz, a division of ComplyRight, Inc.: Has been in operation for 8 years Has seen growth of 50% in the last two consecutive years Processes millions of 1099s Partners with industry giants such as, Office Depot and Intuit

3 Strategy #1: Get the Latest Changes Affecting Wage and Income Reporting Forms

4 What s New? Deadline Changes 1099-MISC Filing Deadline Change If entering data in Box 7 (non-employee compensation): The form must be filed with the IRS by January 31, 2017 regardless of whether using paper or filing electronically. Previously, the e-file date was March 31. If no data in Box 7: You have until February 28, 2017 if using paper and March 31 if filing online. No change to due dates for recipient copies. W-2 Filing Deadline Change 2016 forms must be filed with the SSA by January 31, 2017 regardless if using paper or filing online. Previous e-file date was March 31. Must be filed by Jan 31; previous e-file deadline was March 31.

5 What s New? W-2 Extensions Extensions to file with the SSA are no longer automatic. For filings due on or after January 1, 2017, one 30-day extension may be requested. Application Form 8809 must be used, including a detailed explanation on why additional time is needed. IRS only will grant extension in cases of extraordinary circumstances or catastrophe. This does not affect extensions to furnish W-2 forms to employees.

6 What s New? W-2 Penalties Penalties Increased For: Failure to file correct Forms W-2 by due date Intentional disregard of filing requirements Failure to furnish Forms W-2 Intentional disregard of payee statement requirements

7 What s New? W-2 Penalties Amount of penalty is based on when the correct Form W-2 is filed. $50 per W-2 if the forms are correctly filed within 30 days of the due date. Maximum penalty: $532,000 per year $186,000 maximum for small businesses $100 per W-2 if the forms are correctly filed more than 30 days after the due date but before August 1. Maximum penalty: $1,596,500 per year $532,000 maximum for small businesses $260 per W-2 if the forms are filed after August 1, corrections are not filed or the W-2 is not filed at all. Maximum penalty: $3,193,000 per year $1,064,000 maximum for small businesses Higher penalty amounts apply to returns required to be filed after 12/31/15

8 Strategy #2: Overcome First-Year ACA Reporting Challenges

9 ACA Challenges The new ACA reporting posed challenges: The IRS actively questioned coverage and whether filers owed money Many people didn t receive ACA forms in time to file their taxes due to mail date extensions No extensions are expected for the upcoming season This means your clients should all receive necessary forms by the January 31 deadline 2017 Dates: January 31 deadline to supply employees with 1095-B and 1095-C February 28 deadline to file forms 1095-B and 1095-C with the IRS March 31 deadline to submit forms 1095-B and 1095-C to the IRS if filing electronically

10 Strategy #3: Make the Shift to the Cloud

11 Cloud 1099 and W-2 Processing Consider these advantages: Helps ensure accuracy Gives you instant IRS notification of receipt Eliminates the need to inventory forms Reduces trips to the office supply store for paper and toner Eliminates paper jams or misaligned forms in printers No need to save and print copies for offline storage Last minute filing option to meet deadlines Payers and recipients are stored for use year after year

12 efile4biz.com Advantages for Accountants Set up multiple payers File on behalf of many clients from a single account Tap into volume discounts by filing for all your clients at once Streamline billing by "batching" forms into a separate order for each client Have full access to client forms for four years Ensure you can locate lesser-used forms; no need to inventory Pass off minor tasks to clients requesting work outside of your scope of services

13 Strategy #4: Choose the Right Partner

14 Questions when Selecting a Partner Not all providers are created equal: Does the e-file provider have considerable tax form experience? Is the provider an IRS authorized e-filer? Has the e-filing, print and mail process achieved SOC certification from the American Institute of CPAs? Is the facility HIPAA compliant? Does the e-file site give you the ability to make online corrections? Does it have ACA form filing capabilities? efile4biz.com meets all of this criteria

15 Strategy #5: Take Advantage of Data Migration

16 efile4biz.com Data Migration Multiple app integrations for Form 1099-MISC to help ease the transition from paper to e- filing, including: QuickBooks Online Plus Xero Bill.com Excel Template (available if you don t use QuickBooks or filing forms other than MISC) Provides predefined columns for all the required payer, recipient, form and amount fields Copy and paste data from other reports/systems or fill in the fields directly for uploading Upload account and form information through Excel templates

17 Questions? Thank you for attending!