Clearly Steve Mercatante of taxinformationreporting.com knows a thing or two or a thousand about the IRS, tax information reporting and issuing 1099s (and other tax forms). He joined the AP Now podcast to discuss these issues. He had so much to say, we never did get around to talking about the book he wrote in his spare time, Why Germany Nearly Won the War.

He began by explaining that the IRS makes changes to many of its forms each year. This keeps those working in accounts payable on their toes if they are responsible for filing 1099s for payments reportable to the IRS. It is also what makes it important that professionals responsible for this reporting get the latest rules each year. He also talked about how many reporting situations are gray depending on the circumstances surrounding the issue.

Getting this stuff right is important for many reasons including the fact that getting it wrong could result in fines and penalties. Mercatante talked about keeping good documentation in order to help get fines and penalties abated.

He also discussed how calling the IRS to get information or help with an issue has gotten more difficult over the last few years. While there are a number of reasons for this, no budget increases in the last ten years means effectively a cut in budget. However, this IRS has been focused on enforcements, especially of corporates and large organizations. So, getting 1099s completed accurately is more important than ever. That’s why AP Now hires Steve Mercatante to do educational programs for its members each year. 

Host: Mary Schaeffer (https://www.ap-now.com/)

Guest: Steve Mercatante (https://www.taxinformationreporting.com/)

Sponsor: Stampli (https://www.stampli.com/apnow/)

Credit: Music: https://www.purple-planet.com