Several experts at Avalara, Inc. have shared their predictions for the intersection of tax compliance and technology in 2024. Here are the key points:
- AI will provide more tax answers for businesses, helping with tasks such as associating products with specific tax codes and filing tax returns.
- AI will have a profound impact on the accounting industry, enhancing efficiency and enabling more informed decision-making.
- There will likely be an increase in audits in 2024 as state budgets struggle to recover from the pandemic.
- E-invoicing will become more widespread globally and will integrate tax compliance and business processes into a single streamlined workflow.
- Social commerce will continue to grow, with marketplaces shifting their strategies to sell directly to consumers through social media.
- IRS Form 1099 rules may see further reforms, potentially lowering the filing requirements for marketplace sellers and shared economy workers.
These are just a few predictions for 2024, and they highlight the increasing role of automation and artificial intelligence in the tax compliance landscape. Businesses should prepare for these changes and consider leveraging technology to stay ahead of the curve.