1099 Compass Regulatory Update: Week of Nov. 6, 2017

 

Changes to tax compliance requirements and legislation happen frequently at the state and IRS levels.  In order to provide customers with the updated and accurate information they need, Sovos documents each of these changes in its Compass portal. Here are some notable changes in 1099 reporting from this week.

 

South Carolina Publishes 2017 Instructions & Specifications for Filing Forms W-2

South Carolina recently published the 2017 version of Publication RS1, the Instructions & Specification for Filing Forms W-2. This publication is used by filers to produce and upload withholding reporting information to the South Carolina Department of Revenue, through their MyDORWAY portal.

 

There are a few changes to the publication from the previous version, which are as follows:

  • All references to the SCBOS.SC.Gov portal have been removed, and are replaced with links to the MyDORWAY.dor.sc.gov portal. MyDORWAY is now the only portal through which filers can submit withholding records electronically.
  • File Requirements (p. 3): Additional requirements were created for the file naming convention.
    • State wage records should be named “W2ReportXX_XX.txt”. The first “XX” refers to the version of the file you are submitting: the first version should read “01” in the first “XX” position, and increase with each subsequent version submitted.
    • The second “XX” refers to the last two digits of the tax year. This part of the naming convention remains unchanged from the previous version of the specifications.
  • FAQs (p. 5): Under the third FAQ (“Do I register or is there an application before filing electronically or by CD-ROM”), the change to MyDORWAY requires a one-time registration (previous online portals did not require registration).
  • Form WH-1612 (Transmittal Form for W2s or 1099s Submitted by CD-ROM or Paper) was added to Publication RS-1 (pages 6-7).

Please note that the Code RS – State Record section remains unchanged from the previous version of these specifications.

 

To review this publication in full, please click here.

 

Connecticut to Revise Specifications for Reporting Tax-Exempt Bond Interest Information

Connecticut recently released the 2017 Electronic Specifications for Submission of State and Local Government Tax Exempt Bond Interest Information.  Sovos has received written confirmation from Connecticut that these Specifications will be further revised in the future.  In particular, Connecticut has informed Sovos that the due date for reporting tax-exempt bond interest information will be changed to April 30.  Under the presently published Specifications, the due date is listed as January 30.

 

Sovos anticipates the that revision will still require the reporting of accrued interest received by the buyer, accrued interest paid by the seller, and original issue discount for the year of purchase.  This information was not required to be reported in previous years.

 

When the Specifications are revised, Compass will be updated to reflect the revision.

 

Follow the link below to review the 2017 Electronic Specifications for Submission of State and Local Government Tax Exempt Bond Interest Information as they are presently published.  Please bear in mind that these Specifications are subject to future revision.

 

Link

 

Take Action

Find out how Sovos facilitates 1099 reporting.

 

Get in touch to learn more about Sovos Compass.

 

 

About the Author

Gerry  Nelligan

www.sovos.com

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