Decoding ACA Compliance: A Step-by-Step Guide for Employers

The Affordable Care Act (ACA), established in 2010, brought about transformative changes to the healthcare sector, primarily designed to broaden healthcare access across the nation. In addition to expanding coverage, the ACA imposed new duties on employers, fundamentally reshaping their role in the healthcare ecosystem. A pivotal element of this legislation was the rollout of... Read more »

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IRS Updates to Form 1042-S for 2025: What SMBs Need to Know

The IRS has released the new version of Form 1042-S, which is used to report U.S. source income earned by foreign persons and the withholding associated with that income. Below is a breakdown of the updates made to the 2025 Form (used to report income earned in 2024): 1. New Box 7d A new checkbox... Read more »

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IRS Red Flags: Common Business Tax Mistakes to Avoid This Tax Season

The IRS officially started accepting returns as of January 27, setting off a flurry of activity for businesses, payroll teams, and tax professionals. With the IRS expecting to process over 140 million individual tax returns by the federal deadline, the next few months will be a race against the clock for businesses across the country.... Read more »

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What to Know About Form 1042 Electronic Filing

The IRS is welcoming a new era of tax reporting with updated electronic filing requirements that aim to streamline processes and improve compliance. Starting with tax year 2024, all U.S. withholding agents must electronically file Form 1042 Annual Withholding Returns for U.S. Source Income of Foreign Persons, marking a major shift from the paper-based submissions... Read more »

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Mark Your Calendars with These 2025 Tax Deadlines

Tax season doesn’t have to feel like a last-minute scramble to the finish line for your business. Knowing what’s due and when—whether it’s furnishing information returns to recipients or filing them with the IRS—is the first step in maintaining compliance and avoiding costly penalties. Let’s dive into the key deadlines every business needs to know... Read more »

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Important Updates to ACA Reporting (1095-B/1095-C) for SMBs

If your business provides health coverage, you should be aware of new regulations put in law by two bills recently signed by President Biden. These new regulations will impact reporting requirements and include penalty provisions for employers and health insurance providers that provide minimum essential health care coverage under the Patient Protection and Affordable Care... Read more »

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Tax Reporting Resources for Those Affected by the California Wildfires

The wildfires sweeping through Los Angeles County have left a significant impact on families, communities, and businesses. At Sovos, our hearts go out to everyone affected. As you navigate these challenging times, we remain committed to supporting all businesses in any way possible. We understand that 1099 and W-2 reporting may not be top of... Read more »

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The Tax Season Survival Guide for Small Businesses

Tax season can feel like navigating a maze of forms, deadlines, and complex IRS rules—especially for small business owners. Whether it’s employees, contractors, or vendors, each payment type comes with its own set of tax forms and filing requirements. Yet, missing a deadline or making a mistake can lead to hefty penalties, making it essential... Read more »

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IRS Form 1042 eFiling Requirements Late Breaking Changes

In a late breaking change, the IRS released Notice 2024-26 this week that announced a delay in the new requirement to electronically file Form 1042 (the Annual Withholding Tax Return for U.S. Source Income paid to foreign payees) for 2023 transactions with the IRS’s Modernized e-File (MeF) system. Specifically, the notice indicates that organizations managing... Read more »

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What’s New in eFileMyForms for Tax Year 2023

We’ve been busy over the past few months, making sure eFileMyForms provides you with a trouble-free filing experience this tax season. As you begin the process of preparing your filings, here are some helpful tips and updates to get you started! Video guide for tax year 2023 We’ve created an updated and easy to follow ... Read more »

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Form 1042 withholding return now requires electronic filing

As we approach the year end, there is an important filing change for tax year 2023 that applies to any business that pays US sourced income to foreign persons.  If your organization pays foreign individuals or entities and files the 1042-S form – you are also required to file form 1042, which is the tax... Read more »

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Accessing IRS Systems – Two Paths to Filing

As part of its multi-year business systems modernization plan, the IRS has implemented new systems and processes that must be followed to access their systems to file information returns. With a new process in place, electronically filing information returns requires obtaining access credentials and the first step is to establish an e-Services account with the... Read more »

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Corrections Guide for Tax Year 2023

The IRS processes millions of information returns each year, many of which require filing a corrected return. For tax year 2023, the IRS has changed the way in which corrections must be filed. Failure to file your corrections in the proper method can result in potentially costly penalties and extra time-consuming rework. Here is our... Read more »

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Form Aggregation for Tax Year 2023 – What You Need to Know

The IRS recently released new requirements around electronic filing of all information returns including Forms 1099, 1098, W-2 and more. The recent change includes a new form volume threshold for electronic filing, which is being lowered from 250 forms to 10 forms. Methodology In tax year 2023, the electronic filing threshold will no longer be... Read more »

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Filing Paper Returns – Just Don’t Do It!

We recently had the opportunity to interview James J.  Pupelis, CPA, tax specialist, and long-time user of eFileMyForms. During our conversation with James, we hit on several different and interesting topics, one of which was the need to move away from paper returns. Over the past year, the IRS has made changes to the way... Read more »

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What is the Combined Federal State Filing Program?

The Combined Federal State Filing (CF/SF) program was created more than 20 years ago by the IRS to help lighten the administrative burden on small businesses reporting 1099 information to states. This program aims to help integrate federal and state filings. The IRS uses the information filed in federal returns and then forwards that information... Read more »

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What is a State Annual Reconciliation Form and Why Does it Matter to Me?

What is a State Annual Reconciliation Form and Why Does it Matter to Me? Have you ever wondered what a state annual reconciliation form is and why they must be filed? We’ve answered those questions, and more, in our list of most asked questions regarding state annual reconciliation forms: What is an annual reconciliation form?... Read more »

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What You Need to Know About the IRS eFiling Threshold Changes

What You Need to Know About the IRS eFiling Threshold Changes The IRS recently released new requirements around electronic filing of all information returns including Forms 1099, 1098, W-2 and more. The new requirements also include employment tax returns such as Forms 941, 945 and Form 1042. The changes  impact 2023 returns filed in 2024... Read more »

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Form 1042-S Basics for Small Business

If you are a US based company reporting income paid to a U.S. citizen, you would use one of several 1099 tax forms, such as a 1099-NEC or 1099-MISC. But what’s the protocol for reporting income paid to workers based elsewhere in the world? That answer is form 1042-S. The IRS deadline for both paper... Read more »

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IRS Lowers eFile Threshold to 10 Forms for Tax Year 2023

IRS Lowers eFile Threshold to 10 Forms for Tax Year 2023 The Treasury Department and IRS announced changes this week to electronic filing requirements for a number of 1099 forms and Form 1042 (Annual Withholding Tax Return for U.S. Source Income of Foreign Persons). This notice provides final confirmation on the timeline for implementation of many... Read more »

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