US-based cloud-based compliance solutions provider Avalara has introduced new APIs to automate 1099 and W-9 compliance processes.
The APIs allow businesses to integrate compliance workflows into existing ERP, accounting, ecommerce, or marketplace platforms, eliminating manual processes.
The automation facilitates effective resource allocation and time savings, enhancing the end-to-end compliance process.
The Avalara 1099 & W-9 APIs enable businesses to collect W-9 forms from vendors, validate Tax IDs with IRS databases, and confirm mailing addresses with the US Postal Service.
Also, the APIs electronically file 1099 forms with the IRS and states and deliver recipient copies, managing all these tasks from a single, centralised platform.
Avalara accelerator businesses general manager Kevin Halverson said: “Avalara files millions of 1099s with the IRS and state tax authorities each year on behalf of our customers.
“Our new APIs offer customers increased flexibility to connect with their existing systems to fully automate their W-9 collection and 1099 filing, provide our technology partners with the ability to embed our services within their own offering, and demonstrate our commitment to expansion in the 1099 and W-9 compliance market.”
The process begins with a company’s platform transmitting requests for W-9s and payee data to Avalara, which guides Avalara in matching tax IDs, validating addresses, and e-filing.
Avalara’s automated system manages the compliance steps, based on instructions from the company’s platform, and its APIs provide auto-delivery of IRS status updates.
Businesses can receive updates on their IRS filings, which can trigger actions such as text alerts or vendor communications.
The integration ensures easy communication between a business, vendors, and the IRS.
Avalara’s 1099 & W-9 APIs provide on-demand access to vendor and payee details, streamlined workflows for efficiency, and e-filing capabilities without direct IRS engagement.
Earlier this year, Avalara launched an updated connector for Salesforce’s Revenue Cloud to optimise tax compliance for businesses using the platform.
The updated Revenue Cloud connector allows its partners and customers to simplify tax compliance across CPQ, Billing, and Subscription Management within Revenue Cloud.
