The Information Reporting Program Advisory Committee (IRPAC) has released its annual report for 2013, providing numerous recommendations to the Commissioner of Internal Revenue on new and existing issues in tax administration. IRPAC is a federal advisory committee that serves as an organized public forum for discussion of information reporting issues. IRPAC members are drawn from the tax professional community, financial institutions, small and large businesses, colleges and universities, securities firms and payroll firms. The 2013 report recommends that the IRS:
- Expand truncation of taxpayer identification numbers on information returns to include EINs (employer identification numbers); truncation of SSNs, ITINs and ATINs is already permitted
- Expand the free on-line TIN Matching Program to permit matching on a greater number of information return types (TIN Matching is presently limited to the Forms 1099 which are subject to the backup withholding regulations)
- Further postpone the FATCA implementation timeline from the current effective date July 1, 2014, to January 1, 2015
- Establish a de minimis dollar amount below which the filing of corrected Forms 1099 would not be required (a net change of $50 or less, up or down, would not require the mailing or filing of a corrected information return)
- Improve the Form 1099-MISC instructions to reduce filing errors
- Provide additional guidance, including some important definitions, for Form 1099-K reporting under I.R.C. section 6050W.
IRPAC also made recommendations concerning cost basis reporting for debt instruments, the reporting requirements of the Affordable Care Act, faxed and scanned Forms W-8, the “eyeball test” for U.S. corporations which is impacted by FATCA regulations, the drafts of new Forms W-8, clarification needed for Form 1098-T, and other issues.
See the 2013 IRPAC Public Report at http://www.irs.gov/Tax-Professionals/2013-IRPAC-Public-Report