There’s new insight for your finance department on IRS’s forthcoming 1099 platform.
As you know, the Taxpayer First Act calls for the development of a new online platform that will help your staff prepare, file and maintain accurate records of Forms 1099.
Granted, staffers will have to be a little patient, since the 1099 platform’s deadline isn’t until January 2023. But in the meantime, to keep you informed on its progress, the Electronic Tax Administration Advisory Committee (ETAAC) included a discussion on how it envisions the platform operating in its 2020 Annual Report to Congress.
According to the report, IRS is collecting insight from a variety of relevant experts, such as:
- External stakeholders: This includes IRS advisory groups, as well as representatives of payroll service providers and similar groups that offer 1099 preparation and submission services.
- State and other government agencies: The Service is mainly conversing with state or agencies that have systems for information return preparation and submission.
- Finance pros: During an industry call this past spring, it also encouraged you and your peers to submit comments and suggestions of what your staff – the people using the platform firsthand – would like to be considered for 1099 e-filing.
The ETAAC hopes this continued collaboration will prevent the 1099 platform from being a “stove-piped or siloed solution.”
Creating a vision
Based on the feedback received from these various groups, it’s working to identify best practices, gear system requirements/design and understand what functionality users want.
Among other things, the ETAAC suggests the 1099 platform include:
- Full integration: The 1099 platform should be completely integrated into the broader IRS information technology infrastructure and systems to enable streamlined data flow.
- Real-time data validation: Around year-end, there are often long delays before the states receive 1099 filing info from IRS. More timely validation between IRS and states would prevent delays, the ETAAC notes.
As mentioned, the IRS has also said that the 1099 platform’s interface and functionality will be similar to SSA’s Business Services Online. So, if your A/P staffers have any questions about what more to expect at this point, your payroll pros may be able to provide further insight.
And we’ll keep you posted on more updates and news from IRS as the platform’s development continues.