Internal Revenue Bulletin: 2015-33
August 17, 2015
This document contains statutory changes and corrections to Revenue Procedure 2015–35, as published on Monday, June 29, 2015 (I. R. B. 2015–26 1142). In particular, this announcement updates the penalties for failure to file correct information returns under section 6721 of the Code as amended by Public Law 114–27, section 806, signed June 29, 2015.
In Section 1.3.3 Copy A Specifications. P.L. 114–27, signed June 29, 2015, increased the penalties for failure to file correct information returns under section 6721 of the Code. The correct penalties are:
$50 per information return if you correctly file within 30 days of the due date of the return; maximum penalty $500,000 per year ($175,000 for small businesses).
$100 per information return if you correctly file more than 30 days after the due date but by August 1; maximum penalty $1,500,000 per year ($500,000 for small businesses).
$250 per information return if you file after August 1 or you do not file required information returns; maximum penalty $3,000,000 per year ($1,000,000 for small businesses).
At the beginning of the revenue procedure in section 26 CFR601.602 Forms and Instructions, the error consists in not including a regulation section. The regulation section that should be included is 1.6047–2.
In Section 1.1.5 What’s New, under the heading FATCA filing requirements of certain foreign financial institutions (FFIs). The error consists in including in the last bullet of the bullet list Form 1042–S Foreign Person’s U.S. Source Income Subject to Withholding. Form 1042–S Foreign Person’s U.S. Source Income Subject to Withholding bullet should be deleted from the bullet list.
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