| Form 1099-MISC Repeal & State Reporting - Although Congress repealed the IRC Section 6041 additional 2012 Form 1099-MISC requirement to report merchandise and corporations, the states that adopted the federal rule may or may not repeal the additional requirement and/or have different filing requirements and/or may require separate legislation for repeal. Filers need to annually verify if there are any state reporting requirements that must be met and that are not part of the IRS Combined Federal/State Program.
Another Form 1099-B - The IRS has posted another 2011 Form 1099-B Proceeds From Broker and Barter Exchange Transactions updating the previous 2011 form and draft. The form has been substantially changed to include the cost basis reporting requirements for sales of covered securities. This version excludes the box 7 total gain/loss information previously included and reserves box 7 for future use. Make sure you are using the latest version of the form when programming for reporting year 2011 including cost basis.
Penalties & Form 1042-S - Stuart Mann, Program Manager, IRS has indicated that for the first time, Forms 1042-S will be included on the upcoming Notice 972CG and will be subject to penalty for 2009 late filing and improper paper filing (over 250). The penalties for tax year 2010 will double from $50 to $100, and the ceiling will increase to $1.5 million. Intentional disregard penalties are $250 with no maximum. Upon receipt of the 972CG Notice of Proposed Penalty that is received generally each year in August, the filer will have 45 days to respond with a "reasonable cause" argument for abatement.
Upcoming IRS Forums - Go to www.irstaxforum.com/index for a list of dates and cities for this year's tax forums. Generally, the forums apply to tax return preparers but some IRP information is also addressed.
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