New Offerings Aid in Protecting Companies that May be at Greater Risk for IRS Penalties

1099 Pro, Inc. and IRSCompliance Announce New Comprehensive Offerings to Address New and Proposed IRS Legislation

CALABASAS, Calif., March 26 /PRNewswire/ -- IRSCompliance, Inc., the Regulatory Compliance Services Arm of 1099 Pro, Inc., announced today that United States businesses may be significantly impacted by new and proposed IRS legislation and initiatives during the next few years.

Jerry Michael, CEO of IRSCompliance, Inc. and former Chief of IRS Information Returns Branch stated that there are proposed or current tax laws that:

-- Require Filers to utilize TIN matching

-- Allow vendors to request payors to withhold federal tax at source

-- Require 1099 reporting for payments to corporations

-- Require governmental agencies to withhold three percent of payments for
goods and services


Michael stated that these items are in addition to current IRS compliance/audit initiatives to enforce the reporting requirements currently in place.

"Companies should focus on evaluating the components of their current procedures and be proactive in reviewing new and proposed legislation to determine the impact," said Michael. "Companies need to identify any financial risk attributed to non-compliance regarding information reporting and withholding requirements."

If risks are identified, companies should consider developing and implementing a plan to minimize exposure to an IRS audit. The current IRS initiative to audit all companies that make payments to foreign entities and increase the scope of audits to include all other compliance requirements, including credit card transactions, will have a long term impact on companies found to be non-compliant.

IRS Penalties

The penalties for failing to perform the required actions can be up to $250,000 for late filing and/or filing with incorrect TINs (there is proposed legislation to increase these penalties to $1 million).

If companies are required to perform backup withholding or foreign withholding (28 percent for U.S. payees and treaty rates or 30 percent for foreign payees of the gross payment) and fail to comply, the company may also be held responsible for the amount that should have been withheld, along with paying any penalties and interest. For a large company this amount could easily reach the eight figure range.

"Ignorance of the law is not an acceptable defense with the IRS," said Michael.

New Offerings from 1099 Pro, Inc. and IRSCompliance, Inc.

In response, 1099 Pro, Inc. and IRSCompliance are offering comprehensive solutions to address these requirements. Services offered range from turn-key solutions to a menu of services which include regulatory consulting, desktop, client server, or web based software, information reporting and withholding education, processing/filing services, SAS 70 Type II hosting along with print/mail services.

1099 Pro, Inc. is a Microsoft Certified Partner with solutions that empower companies to identify risks, enhance processes and procedures, and incorporate a compliant information tracking and reporting application that addresses all federal and state requirements including the 1099-HC (Health Care Reporting for Massachusetts).


More information can be found by calling 1-866-444-3559 or visiting http://www.1099pro.com/ or http://www.irscompliance.org/.