Archive

Posts Tagged ‘new 1099 penalties’

Trade Preferences Extension Act of 2015

July 16th, 2015 No comments

The Trade Preferences Extension Act of 2015 extends a trade agreement with sub-Saharan African countries and prevents trade partners from undercutting United States businesses with artificially low prices.

Deep within this bill are new penalties for failure to file correct information returns and failure to provide Copy B to recipients.

The text from the “Trade Preferences Extension Act of 2015” that applies to information returns is below:

SEC. 806. PENALTY FOR FAILURE TO FILE CORRECT INFORMATION RETURNS AND PROVIDE PAYEE STATEMENTS.

(a) In general.-Section 6721(a)(1) of the Internal Revenue Code of 1986 is amended-

(1) by striking “$100” and inserting “$250”; and

(2) by striking “$1,500,000” and inserting “$3,000,000”.

(b) Reduction where correction in specified period.-

(1) CORRECTION WITHIN 30 DAYS.-Section 6721(b)(1) of such Code is amended-

(A) by striking “$30” and inserting “$50”;

(B) by striking “$100” and inserting “$250”; and

(C) by striking “$250,000” and inserting “$500,000”.

(2) FAILURES CORRECTED ON OR BEFORE AUGUST 1.-Section 6721(b)(2) of such Code is amended-

(A) by striking “$60” and inserting “$100”;

(B) by striking “$100” (prior to amendment by subparagraph (A)) and inserting “$250”; and

(C) by striking “$500,000” and inserting “$1,500,000”.

(c) Lower limitation for persons with gross receipts of not more than $5,000,000.-Section 6721(d)(1) of such Code is amended-

(1) in subparagraph (A)-

(A) by striking “$500,000” and inserting “$1,000,000”; and

(B) by striking “$1,500,000” and inserting “$3,000,000”;

(2) in subparagraph (B)-

(A) by striking “$75,000” and inserting “$175,000”; and

(B) by striking “$250,000” and inserting “$500,000”; and

(3) in subparagraph (C)-

(A) by striking “$200,000” and inserting “$500,000”; and

(B) by striking “$500,000” (prior to amendment by subparagraph (A)) and inserting “$1,500,000”.

(d) Penalty in case of intentional disregard.-Section 6721(e) of such Code is amended-

(1) by striking “$250” in paragraph (2) and inserting “$500”; and

(2) by striking “$1,500,000” in paragraph (3)(A) and inserting “$3,000,000”.

(e) Failure To furnish correct payee statements.-

(1) IN GENERAL.-Section 6722(a)(1) of such Code is amended-

(A) by striking “$100” and inserting “$250”; and

(B) by striking “$1,500,000” and inserting “$3,000,000”.

(2) REDUCTION WHERE CORRECTION IN SPECIFIED PERIOD.-

(A) CORRECTION WITHIN 30 DAYS.-Section 6722(b)(1) of such Code is amended-

(i) by striking “$30” and inserting “$50”;

(ii) by striking “$100” and inserting “$250”; and

(iii) by striking “$250,000” and inserting “$500,000”.

(B) FAILURES CORRECTED ON OR BEFORE AUGUST 1.-Section 6722(b)(2) of such Code is amended-

(i) by striking “$60” and inserting “$100”;

(ii) by striking “$100” (prior to amendment by clause (i)) and inserting “$250”; and

(iii) by striking “$500,000” and inserting “$1,500,000”.

(3) LOWER LIMITATION FOR PERSONS WITH GROSS RECEIPTS OF NOT MORE THAN $5,000,000.-Section 6722(d)(1) of such Code is amended-

(A) in subparagraph (A)-

(i) by striking “$500,000” and inserting “$1,000,000”; and

(ii) by striking “$1,500,000” and inserting “$3,000,000”;

(B) in subparagraph (B)-

(i) by striking “$75,000” and inserting “$175,000”; and

(ii) by striking “$250,000” and inserting “$500,000”; and

(C) in subparagraph (C)-

(i) by striking “$200,000” and inserting “$500,000”; and

(ii) by striking “$500,000” (prior to amendment by subparagraph (A)) and inserting “$1,500,000”.

(4) PENALTY IN CASE OF INTENTIONAL DISREGARD.-Section 6722(e) of such Code is amended-

(A) by striking “$250” in paragraph (2) and inserting “$500”; and

(B) by striking “$1,500,000” in paragraph (3)(A) and inserting “$3,000,000”.

(f) Effective date.-The amendments made by this section shall apply with respect to returns and statements required to be filed after December 31, 2015.

VN:F [1.9.22_1171]
Rating: 0.0/5 (0 votes cast)
VN:F [1.9.22_1171]
Rating: 0 (from 0 votes)