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Agents Regulatory Drafting and Communication Agent
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Regulatory Drafting and Communication Agent

Generates compliant regulatory filings and vendor notifications for 1099 and escheatment, reducing manual effort and ensuring accuracy.

Preparing accurate regulatory filings and vendor communications for 1099 reporting and escheatment obligations is a complex, time-sensitive task for accounts payable teams during period-end. Errors, omissions, or delays can result in compliance breaches, penalties, or strained vendor relationships.

The Regulatory Drafting and Communication Agent simplifies this process by extracting validated accounting data from both structured payment records and unstructured invoice attachments. It formats filings in accordance with IRS and state requirements and generates standardized vendor communications, ensuring regulatory alignment and clarity throughout.

By automating these workflows, the agent reduces manual drafting, minimizes errors, and ensures timely submission of all required documents. Finance teams can focus on complex exceptions and high-value review tasks, while maintaining consistent compliance with statutory deadlines. Organizations benefit from streamlined regulatory workflows, enhanced accuracy, reduced risk, and improved operational efficiency.

Accuracy
TBD

Speed
TBD

Input Data Set

Sample of data set required for Regulatory Drafting and Communication Agent:

Compliance Action Drafting Request


Request ID: 89a1b4c7-d8e2-4f3b-9e4a-5c6d7e8f9a0b
Request Date: 2024-01-15
Source System: AP Compliance Validation Module
Tax Year: 2023




Action Item 1: Draft IRS Form 1099-NEC Schedule


Vendor ID: VEN-60771
Vendor Name: Apex Solutions LLC
Taxpayer Identification Number (TIN): XX-XXX6789
Address: 456 Innovation Drive, Suite 200, Tech Park, CA 94043
Payment Summary (Tax Year 2023):


    

  • Total Nonemployee Compensation: $15,850.00
    • 

  • Reference Invoices: INV-2023-1109, INV-2023-1452, INV-2023-1987
    • 



Action Required: Draft IRS Form 1099-NEC for tax year 2023 based on the provided payment summary.




Action Item 2: Draft Escheatment Due Diligence Notice


Vendor ID: VEN-30125
Vendor Name: Quantum Dynamics Inc.
Last Known Address: 123 Research Blvd, Science City, TX 77001
Uncashed Payment Details:


    

  • Check Number: 459012
    • 

  • Check Date: 2022-07-10
    • 

  • Check Amount: $1,235.50
    • 

  • Dormancy Period: 18 Months (Exceeded)
    • 



Action Required: Draft a formal due diligence letter to the vendor regarding the uncashed check, informing them of the pending escheatment to the state of Texas if the funds are not claimed.

Deliverable Example

Sample output delivered by the Regulatory Drafting and Communication Agent:

Compliance Document Draft Report


Report ID: DRAFT-20240115-99B
Generated On: 2024-01-15
Summary: The following compliance documents have been drafted based on Request ID 89a1b4c7-d8e2-4f3b-9e4a-5c6d7e8f9a0b.






Vendor Name
Document Type
Status






Apex Solutions LLC
IRS Form 1099-NEC
Draft Complete




Quantum Dynamics Inc.
Escheatment Due Diligence Letter
Draft Complete








1. Draft Regulatory Filing: IRS Form 1099-NEC


Status: Ready for final review and submission via the corporate e-filing system.






Field Name
Data






PAYER'S name, address, etc.
InnovateCorp
789 Corporate Way
Metroville, NY 10001		




PAYER'S TIN
XX-XXX1234




RECIPIENT'S TIN
XX-XXX6789




RECIPIENT'S name
Apex Solutions LLC




Street address
456 Innovation Drive, Suite 200




City, state, ZIP code
Tech Park, CA 94043




1. Nonemployee compensation
$15,850.00




4. Federal income tax withheld
$0.00








2. Draft Vendor Communication: Escheatment Due Diligence Notification


Status: Ready for final review and dispatch via certified mail.


To:
Quantum Dynamics Inc.
Attn: Accounts Receivable
123 Research Blvd
Science City, TX 77001


From:
InnovateCorp Accounts Payable
789 Corporate Way
Metroville, NY 10001


Date: January 15, 2024


Subject: IMPORTANT NOTICE Regarding Unclaimed Property


Dear Quantum Dynamics Inc.,


Our records indicate that a payment issued to you by InnovateCorp remains outstanding and has not been cashed.


The details of this payment are as follows:


    

  • Check Number: 459012
    • 

  • Issue Date: July 10, 2022
    • 

  • Amount: $1,235.50
    • 



This property is now considered dormant under Texas state law. As required by law, we are obligated to remit these funds to the State of Texas as unclaimed property if they are not claimed by you within 60 days of the date of this letter.


To claim these funds and prevent them from being escheated to the state, please contact our Accounts Payable department immediately at ap@innovatecorp.com or (212) 555-0123 to arrange for a replacement payment.


We urge you to act promptly to resolve this matter.


Sincerely,


The InnovateCorp Accounts Payable Team

Maximize Impact Across Core Functional KPIs

Regulatory Compliance
Risk Reduction
Employee Productivity
Process Cycle Time

Ensure adherence to IRS and state regulations by automatically generating precise, compliant documents for 1099 and escheatment reporting.

Standardize Filing Preparation
  • Automatically formats filings according to the latest IRS and state-specific requirements.
  • Extracts validated data from both structured payment records and unstructured invoices.
  • Generates consistent, error-free documentation for all required submissions.
  • Cross-references data points to ensure completeness and accuracy.
Unify Vendor Communication
  • Drafts standardized notifications to vendors regarding 1099 forms and escheatment actions.
  • Creates a complete audit trail of all generated communications and filings.
  • Maintains a consistent and professional tone across all external-facing documents.

Mitigate financial penalties and audit failures by systematically minimizing errors and omissions in regulatory submissions and vendor communications.

Minimize Filing Errors
  • Validates extracted financial data against source systems to prevent discrepancies.
  • Eliminates manual data entry errors common in complex regulatory drafting.
  • Flags incomplete or inconsistent information for human review before finalization.
  • Applies consistent formatting rules to prevent submission rejections.
Prevent Compliance Breaches
  • Ensures all required documents are generated ahead of statutory deadlines.
  • Maintains an auditable record of all generated documents and communications.
  • Reduces the likelihood of penalties resulting from incorrect or late filings.

Free up accounts payable teams from repetitive, low-value drafting tasks, allowing them to focus on strategic analysis and exception handling.

Automate Repetitive Drafting
  • Autonomously generates hundreds of regulatory filings and vendor letters in minutes.
  • Pulls required data directly from source systems without manual intervention.
  • Applies pre-defined templates for all 1099 and escheatment communications.
Streamline Review Cycles
  • Presents cleanly formatted documents for efficient human review and approval.
  • Summarizes key data points, reducing manual verification time for reviewers.
  • Allows teams to manage the process by exception rather than reviewing every detail.

Dramatically accelerate the period-end reporting process by automating document creation and ensuring timely submissions to regulators and vendors.

Expedite Document Generation
  • Reduces the time to create a complete set of 1099 filings from days to hours.
  • Instantly generates vendor notifications upon successful data validation.
  • Operates 24/7 to process large volumes of data outside of primary business hours.
Ensure On-Time Submissions
  • Systematizes the workflow to avoid last-minute rushes before filing deadlines.
  • Provides clear visibility into the status of document generation for better planning.
  • Eliminates critical delays caused by manual errors and subsequent rework.

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