RubinBrown solves 1099 challenges

RubinBrown is one of the leading accounting and professional consulting firms in the U.S. and an independent member of Baker Tilly International, the ninth-largest accounting and business advisory network in the world. With nearly 1,000 total staff, RubinBrown operating units include Assurance Services, Business Advisory Services, Entrepreneurial Services, Tax Services, and RubinBrown Advisors. The firm has seven offices across the U.S.

For most people, “tax season” brings to mind 1040 forms and April deadlines. But for businesses — and for the tax and accounting firms that serve them — the season begins long before that. A key date is January 31, the deadline for employers to provide contractors and other workers defined as non-employees with 1099 forms. They also have to report that information to agencies such as the IRS, of course.

That’s challenging enough, but nothing in the tax world seems to stay the same for very long. Changing rules are adding complexity for businesses of all sizes, from the overall number of 1099s they need to file to the filing process itself.

RubinBrown has been watching the changes closely and proactively working with its clients to ensure compliance, according to Lynnae Robinson, a CPA and leader of RubinBrown’s Entrepreneurial Services Group. But a number of small businesses that have been handling the process manually are likely in for an unpleasant surprise.

This challenge presents an opportunity for accounting firms, though: It’s a chance to engage with clients, educate them, and build a deeper relationship as a trusted advisor. “With many of our smaller, family-owned client businesses, some have been more comfortable doing things in a more manual way,” says Lynnae. “So, we’ve had to proactively educate them and encourage them to embrace a new system and let them know we can help them improve compliance.”

A key part of that new system is Avalara’s automated 1099 & W-9 compliance platform, which RubinBrown leverages on behalf of clients during tax season and year-round.

A longtime leader in tax automation, Avalara provides holistic compliance solutions that help firms manage these and other processes for their clients — increasing accuracy, reducing the need for data entry, and lowering risk. (And when it comes to 1099s, the risk is significant: Fines can range up to more than $300 per form if the deadline is missed.)

RubinBrown implemented Avalara 1099 & W-9 to efficiently scale its service for thousands of clients, simplifying compliance and reporting for 1099s, W-9s, 1095s, and W-2s. Avalara’s cloud-based service is also volume-based, meaning firms of any size can take advantage of the latest advances in technology automation.

The solution streamlines processes at every step, from managing information of client vendors and freelancers to storing documents and even checking for errors. And when it’s time to file, Avalara e-filing is automatic for the IRS and required states; 1099 copies are also sent to the appropriate recipients.

“We needed a consistent platform, accessible by teams from across different offices working on the same clients,” Lynnae explains. “Avalara was able to give us this single platform that matched our ‘one firm’ concept and made it possible to serve our clients more effectively.”