IRS Prop. Reg.: Information Return, Correct Payee Statements Penalty Safe Harbor (IRC §6721)

Proposed regulations relating to penalties for failure to file correct information returns or furnish correct payee statements issued by the IRS. The proposed regulations contain safe harbor rules that, for penalty purposes, generally treat as correct payee statements or corresponding information returns that contain errors relating to de minimis incorrect dollar amounts. The rules prescribe the time and manner in which a payee may elect not to have the safe harbor rules apply, and update penalty amounts and references to information reporting obligations. The proposed regulations also provide guidance to the reporting of basis of securities by brokers as this ...