Attempting to research federal and state regulatory requirements and gain a clear understanding of the law can be burdensome to you and your employer – getting CIRS certified takes you through the process and requirements preparing you with the knowledge you need to comply.
These are just some of the initiatives at the Federal IRS level – there are also many complex State Regulations on mandatory, backup, cross- state withholding and direct information reporting. States are comparing information obtained from the IRS and do have penalty programs which they enforce. Several of the states have passed legislation to piggyback on the new IRS laws, further increasing the penalties and financial risks. The IRS has newsletters, bulletins and notices of new and proposed legislation to ensure that all U.S. companies have access to the information, have time to prepare and implement requirements. Therefore, ignorance of the regulations is not an acceptable defense. It is your company’s responsibility to stay educated, knowledgeable and implement any changes or processes necessary to comply.