This summer, the IRS increased penalties for failure to file correct information returns
and failure to provide correct payee statements for information returns
filed after December 31, 2015, with maximum penalties on small businessesincreasing from $500,000 to $1 million .
Due date modifications: The act sets new due dates for partnership and C corporation returns, as well as for Fin-CEN Form 114, Report of Foreign Bank and Financial Accounts (FBAR), and several other IRS information returns
Failure to follow these new reporting requirements are subject to the penalty for failure to file information returns
In addition to changes to the OVDP, the IRS provided updated guidance addressing the appropriate procedure for taxpayers who have failed to file required international information returns
(such as Forms 5471, Information Return
The data presented in this article were collected from a sample of Forms 5227, Split-Interest Trust Information Returns
, selected during Filing Year 2010.
IRS matches information returns
with taxpayers' income tax returns to see if taxpayers have filed returns and reported all their income.
One of the most important administrative features of the nation's tax system involves the issuance of information returns
(such as Form W-2s and Form 1099s).
In its report, the ETAAC makes 10 recommendations to help the IRS achieve the goal mandated by Congress that 80% of all tax and information returns
In auditing individual or business tax returns, the IRS can use many sources--provided voluntarily or involuntarily--including the taxpayer's own returns, related parties, customers and suppliers as well as information returns
filed by entities the taxpayer is a member of or that make payments to the taxpayer.
Wetzler stated that the State of New York had long ago recognized that the information returns
supplied to the IRS through the federal-state informationsharing program supplied a vast array of easily accessible and useful compliance information.
The Banc One subsidiary was recognized for accuracy in filing information returns
via magnetic media or electronic transmission, explained Steven P.
If the taxpayer fails to attach to that return one of the multiple required information returns
, the limitations period does not begin to run unless and until that missing information return