Sovos Unveils 1099 Professional for SMB Tax Reporting

Tax information reporting can be a challenge for small and medium-sized businesses (SMB).

For example, there are 21 different types of IRS 1099 forms, there can be hundreds to thousands of information return forms to file each year, and it can be difficult to track changes to filing requirements.

In a press release Wednesday (Nov. 6) tax compliance software provider Sovos introduced a new solution called 1099 Professional, which is designed to help SMBs simplify the process of preparing, filing and mailing Forms 1099 and 1042-S (Foreign Person’s U.S. Source Income Subject to Withholding).

“Any payer that issues and files those 1042-S forms also must issue and file a Form 1042,” Sovos Solution Principal Wendy Walker noted in a recent PYMNTS story.

Key features of 1099 Professional are IRS e-filing, print and mail services, direct state reporting for 1099-NEC forms, and support for Form 1042 Modernized eFile reporting. According to the release, it’s designed to reduce errors and those dreaded IRS B notices, minimize manual effort, and avoid potential penalties.

Alice Katwan, Sovos’ president of revenue, commented in the release, “With 1099 Professional, SMBs will have an accessible solution to address the complexities of 1099 reporting, ensuring easy, accurate and compliant reporting across every transaction.”

“Our goal in adding 1099 Professional to our information reporting portfolio is to make tax reporting accessible and manageable for every SMB,” said Ryan Buma, the vice president of eCommerce for Sovos. “1099 Professional stands apart from other services on the market by simplifying the entire tax information reporting process. Our intuitive software empowers organizations to effectively manage the complexities of compliance.”

Users can select plans based on their form volume and the software offers immediate access through credit card purchases. Additionally, new users can take advantage of a seven-day free trial to evaluate 1099 Professional’s capabilities.

This new offering from the company is part of a larger suite of compliance solutions tailored for SMBs. In October, Sovos unveiled an Indirect Tax Suite for all SAP environments.

The company also provides services related to unclaimed property and tax identity management.