[Congressional Bills 114th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3856 Introduced in House (IH)]
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114th CONGRESS
1st Session
H. R. 3856
To amend the Internal Revenue Code of 1986 to provide a safe harbor for
de minimis errors on information returns and payee statements.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
October 28, 2015
Mr. Renacci (for himself and Mr. Carney) introduced the following bill;
which was referred to the Committee on Ways and Means
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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.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Information Reporting Simplification
Act of 2015''.
SEC. 2. SAFE HARBOR FOR DE MINIMIS ERRORS ON INFORMATION RETURNS AND
PAYEE STATEMENTS.
(a) 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,
then no correction shall be required and, for purposes
of this section, such return shall be treated as having
been filed with all of the correct required
information.
``(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.''.
(b) 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,
then no correction shall be required and, for purposes
of this section, such statement shall be treated as
having been filed with all of the correct required
information.
``(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.''.
(c) 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.''.
(d) Conforming Amendments.--
(1) 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''.
(2) 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''.
(e) 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.
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