Section 1 Short title
This Act may be cited as the “Information Reporting Simplification Act of 2015”.
Information Reporting Simplification Act of 2015
A BILL
To amend the Internal Revenue Code of 1986 to provide a safe harbor for de minimis errors on information returns and payee statements.
Sec. 2 Safe harbor for de minimis errors on information returns and payee statements
In general— Section 6721(c) of the Internal Revenue Code of 1986 is amended by adding at the end the following new paragraph:
“(3) Safe harbor for certain de minimis errors
“(A) In general—If, with respect to an information return filed with the Secretary—
“(i) there are 1 or more failures described in subsection (a)(2)(B) relating to an incorrect dollar amount,
“(ii) no single amount in error differs from the correct amount by more than $100, and
“(iii) no single amount reported for tax withheld on any information return differs from the correct amount by more than $25,
“(B) Exception—Subparagraph (A) shall not apply with respect to any incorrect dollar amount to the extent that such error relates to an amount with respect to which an election is made under section 6722(c)(3)(B).
“(C) Regulatory authority—The Secretary may issue regulations to prevent the abuse of the safe harbor under this paragraph, including regulations providing that this paragraph shall not apply to the extent necessary to prevent any such abuse.”
Failure To furnish correct payee statement— Section 6722(c) of such Code is amended by adding at the end the following new paragraph:
“(3) Safe harbor for certain de minimis errors
“(A) In general—If, with respect to any payee statement—
“(i) there are 1 or more failures described in subsection (a)(2)(B) relating to an incorrect dollar amount,
“(ii) no single amount in error differs from the correct amount by more than $100, and
“(iii) no single amount reported for tax withheld on any information return differs from the correct amount by more than $25,
“(B) Exception—Subparagraph (A) shall not apply to any payee statement if the person to whom such statement is required to be furnished makes an election (at such time and in such manner as the Secretary may prescribe) that subparagraph (A) not apply with respect to such statement.
“(C) Regulatory authority—The Secretary may issue regulations to prevent the abuse of the safe harbor under this paragraph, including regulations providing that this paragraph shall not apply to the extent necessary to prevent any such abuse.”
Application to broker reporting of basis— Section 6045(g)(2)(B) of such Code is amended by adding at the end the following new clause:
“(iii) Treatment of uncorrected de minimis errors—Except as otherwise provided by the Secretary, the customer’s adjusted basis shall be determined by treating any incorrect dollar amount which is not required to be corrected by reason of section 6721(c)(3) as the correct amount.”
Conforming amendments—
Section 6721(c) of such Code is amended by striking “Exception for de minimis failures to include all required information” in the heading and inserting “Exceptions for certain de minimis failures”.
Section 6721(c)(1) of such Code is amended by striking “In general” in the heading and inserting “Exception for de minimis failure to include all required information”.
Effective date— The amendments made by this section shall apply to returns required to be filed, and payee statements required to be provided, on or after the date of the enactment of this Act.