Quick answer: IRIS corrections work differently than FIRE corrections. Instead of resubmitting an entire file, you reference the exact record using its Unique Record Identifier (URID) and submit a correction transmission using Transmission Type Code “C.” IRIS validates the correction in real time and returns one of four statuses: Accepted, Accepted with Errors, Partially Accepted,…
Managing 1099 filings at scale is no small task. With the IRS now requiring e-filing for any payer submitting 10 or more information returns, choosing the right platform has real financial consequences. Late or incorrect filings carry penalties ranging from $60 to $680+ per form, depending on how long corrections take. This guide breaks down…
Ask Sovi is an AI-powered product assistant built directly into 1099 Professional, available as of August 17, 2026. It answers product how-to questions in real time by searching Sovos product documentation — at no additional cost to 1099 Professional customers. What Is Ask Sovi? Ask Sovi is an AI assistant embedded in 1099 Professional. It…
The IRS FIRE system will be permanently decommissioned on December 31, 2026. All 2026 information returns, filed in early 2027, must be submitted through IRIS. For mid-market and enterprise filers, that means new file formats, new credentials, new validation logic, and a filing architecture that requires planning well before filing season opens. If your organization…
Quick answer: The OBBBA, signed July 4, 2025, permanently restored the TPSO Form 1099-K threshold to more than $20,000 and more than 200 transactions. But a higher threshold does not simplify compliance. Backup withholding, payment card rules, per-platform aggregation, and state thresholds all operate independently of that federal threshold. The headline change of 2025, the…
For payment platforms and enterprise compliance teams, Form 1099-K sits at the intersection of high-volume transaction data, per-platform threshold tracking, backup withholding obligations, and state-level rules that diverge from the federal standard. The 2025 threshold changes added a recalibration requirement on top of an already complex reporting structure. The compliance challenge is not the headline…
For most organizations, AP teams and controllers at mid-to-large corporations typically manage several 1099 form types simultaneously: 1099-NEC for contractor payments, 1099-MISC for rent and royalties, 1099-INT for interest on business notes, 1099-DIV for shareholder distributions, 1099-R for retirement plan participants, and in many cases, 1042-S for foreign payees. Each carries its own reporting threshold,…
An enterprise filing 50,000 information returns with a 3% TIN error rate faces up to $510,000 in maximum penalty exposure if those errors go uncorrected past August 1. That figure changes significantly based on when errors are caught, how abatement is requested, and what compliance controls are documented. This is a risk management playbook for…
Form 1099-K compliance for enterprise payment platforms post-OBBBA. Covers the 2026 threshold, payment card rules, backup withholding, state divergence, and filing.
Picture this: An enterprise with 15,000 active vendors misses annual W-9 re-solicitations for 800 vendors over two years. When the IRS issues a 972CG penalty notice proposing more than $2 million in information return penalties, the legal team discovers there is no central solicitation history; just informal email trails scattered across different AP mailboxes. The…
