As we approach the end of the year, it’s crucial to gear up for your 2023 tax filings. With significant changes in submission practices for W-2 and 1099 forms, staying informed and prepared is key. This year, the IRS has mandated that employers with ten or more forms, including W-2s and 1099s, must file electronically. This is applicable for forms due in 2024, including those for the 2023 financial year that need submission by January 31, 2024.
Determining Your Filing Category: To check if you fall under the mandatory electronic filing category, tally up the number of information return forms and Form W-2s you have for the year. If the total is ten or more, electronic filing is required. This includes the following Information Return Forms: Form 1042-S, Form 1094 series, Form 1095-B, Form 1095-C, Form 1097-BTC, Form 1098 series, Form 1099 series, Form 3921, Form 3922, Form 5498 series, Form 8027, Form W-2G.
Embracing Tax Automation Tools: If you’re concerned about electronic filing, consider leveraging tax automation tools. These tools simplify the process, ensuring sales tax compliance and streamlining automated tax solutions. With the right tax automation software, such as Avalara’s tax automation services, you can efficiently manage erp tax compliance and sales tax automation.
Preparation for First-time Electronic Filers (W-2’s): The Business Services Online (BSO) revamped its registration process in March 2023. If you registered a Social Security account before September 18, 2021, or have existing Login.gov or ID.me credentials, you can use those. Otherwise, initiate a new account on the Social Security Sign In page.
Checklist for Efficient Tax Management:
- ERP Tax Management: Ensure your enterprise resource planning (ERP) system is updated for tax management ERP, offering a centralized approach to handle tax obligations.
- Tax Compliance Checklist: Develop a checklist that includes all necessary forms and deadlines to maintain tax planning and compliance.
- Automated Tax Compliance Services: Utilize automated tax compliance services for accurate and timely filing.
- Sales Tax Compliance Services: For businesses dealing with sales, incorporate sales tax compliance services to handle varying state tax laws and rates.
Taking Proactive Steps: Setting up accounts and submitting forms before December 31, 2023, will give you a head start. This proactive approach, supplemented by the use of automated tax solutions, will ensure a smoother transition into the New Year. If you have queries regarding tax compliance services or sales tax automation software, feel free to contact us for assistance.
By integrating these protocols and tools into your tax filing process, you can navigate the complexities of tax compliance with greater ease and accuracy.
Start by applying for a TCC code (Please allow at least 45 days for processing)
- Click on Access IRIS Application for TCC
- Sign in with an ID.me existing account or Create an account
Once you have your TCC, you can then apply for a FIRE account by going to https://fire.irs.gov
- You will need your TCC, EIN, and Company Name.
After setting up your account, log into Crestwood Support Portal to submit a ticket to open a case for assistance with your ERP system configuration. If you prefer not to extract a file from the ERP, or if the ERP doesn’t support electronic file generation, e-filing is still mandatory. We collaborate with various ISVs and service providers that can guide you through this.
If you require assistance in converting the 1099 data from Acumatica, GP, etc. into an electronic format, contact us or submit a support ticket on the Crestwood Support Portal to secure a spot on the calendar.