Global tax software provider Sovos has purchased tax software and services company 1099 Pro for an undisclosed fee.
According to Sovos, the acquisition comes amid rapid regulatory and technology that is increasing complexity for businesses of all sizes.
California-based 1099 Pro provides software and services for tax information reporting, including solutions for 1099 forms, tax identification number, electronic filing, Affordable Care Act reporting and tax information reporting.
Sovos noted that the acquisition brings together two long-standing industry leaders and significantly broadens Sovos’ offerings for SMEs as the tax information reporting landscape undergoes ‘rapid regulatory changes that affect every business operating in the US’.
The firm highlighted one example of such a shift is the decision by the Internal Revenue Service to exclude the new 1099-NEC form for non-employee compensation from the Combined Federal/State Filing program.
This decision, Sovos claims, left firms with a ‘messy challenge’ in the 2020 tax season – as 35 states, the District of Columbia and the federal government required companies to report the data in different formats.
Sovos remarked that the coming together of the two businesses will offer choices from self-service downloads to enterprise software-as-a-service.
Sovos CEO Andy Hovancik said, “With disparate reporting obligations at the federal and state levels, as well as lower thresholds for reporting requirements, companies of all sizes need expert-backed software and services to stay compliant. The acquisition of 1099 Pro dramatically expands the Sovos customer base with tens of thousands of customers, as well as enterprise users in higher education; oil and gas; gaming; local, state and federal government agencies; and other industries.”
Sovos vice president or corporate development John Gledhill added, “With our third acquisition of the new fiscal year that began on July 1, Sovos reaffirms its commitment to meet the modern tax needs of every company, from SMBs to enterprises, so those businesses can prosper while their communities thrive by collecting the revenue they are owed.”
Earlier this year, Sovos purchased Chile-based Acepta’s digital enablement business. The acquisition, Sovos claimed, will further its position in digital tax compliance and help the company to meet compliance needs.
Copyright © 2021 RegTech Analyst
Copyright © 2018 RegTech Analyst