#USA #Durham #Avalara #1099 Compliance #W-9 Automation

Avalara Introduces New APIs for Simplified Compliance Automation

In a bid to enhance its offerings in tax compliance automation, Avalara, Inc. has recently rolled out new application programming interfaces (APIs) specifically designed for 1099 and W-9 compliance. This latest innovation aims to provide businesses with a seamless way to integrate compliance workflows directly into their existing systems, including ERP, accounting, ecommerce, or marketplace platforms.

With these new APIs, Avalara empowers organizations to automate numerous time-consuming tasks associated with W-9 and 1099 compliance. This technology enables businesses to:

• - Collect W-9 forms directly from vendors.
• - Validate Tax Identification Numbers (TINs) against IRS databases.
• - Confirm mailing addresses utilizing data from the U.S. Postal Service.
• - Electronically file 1099 forms with the IRS and relevant state authorities.
• - Distribute copies to recipients efficiently.

The complete automation of these workflows can greatly ease the burden of compliance, allowing employees to focus on more critical tasks while minimizing potential errors associated with manual processes.

How It Works

The functionality begins with the business's existing platform, whether it be an ERP or accounting system. Once integrated, businesses can initiate requests for W-9 forms and transmit relevant payee data to Avalara. This data is accompanied by specific instructions for processing, which can include actions such as validating tax IDs or e-filing to appropriate state authorities.

Avalara’s system facilitates communication between the business, its vendors, and the IRS, effectively handling the heavy lifting of compliance. This ensures that the accuracy of vendor information is maintained and that processes are executed efficiently based on a company’s custom needs.

By employing Avalara’s APIs, businesses can receive real-time IRS status updates directly back to their original platform. This allows them to automate follow-up actions, whether that includes internal alerts or communications with vendors.

Key Features of Avalara's APIs

1. On-Demand System: Avalara's APIs allow businesses to submit vendor details and initiate workflows at any time, thereby reducing delays in the compliance process.

2. Consolidated Workflows: Companies, especially those with multiple departments, can streamline operations by utilizing a single workflow. This minimizes the complications arising from managing multiple applications.

3. No Direct IRS Engagement Required: Clients can take advantage of the API's benefits without needing a direct e-filing account with the IRS. Avalara, an IRS-approved facilitator, manages all compliance intricacies on the business's behalf.

4. Enhanced Accuracy: Automation significantly reduces the likelihood of human error, which is prevalent in manual data transfer. Avalara’s system helps alleviate these risks while ensuring smoother operations.

Kevin Halverson, General Manager of Accelerator Businesses at Avalara, expressed his enthusiasm for the launch, stating, "Avalara files millions of 1099s with the IRS and state tax authorities each year. Our new APIs offer customers increased flexibility to connect with their existing systems to fully automate their W-9 collection and 1099 filing."

Avalara’s introduction of these new APIs highlights their ongoing commitment to advancing tax compliance automation to provide more efficient solutions. Businesses looking to streamline their tax compliance processes should consider Avalara’s offerings to enhance their operational efficacy. For more details about Avalara's latest solutions and how they can transform your compliance journey, visit their website.