Regs final on de minimis errors for information returns

 

The IRS recently released final regulations (RIN 1545-BN59) implementing the de minimis error safe harbor exceptions to the penalties for failure to file certain correct information returns (for example, 1099s) and to furnish certain correct payee statements (for example, W-2s) under Code sections 6721 and 6722.

 

The de minimis error safe harbor exceptions were added to code by the Protecting Americans from Tax Hikes Act of 2015, and provide that payers generally are not required to correct an error on an information return or payee statement if the amount of the error is not more than $100 (or not more than $25 if the error is with respect to withholdings).   

 

The final regulations adopt the proposed regulations issued in 2018 with some modifications. The final regulations are generally applicable with respect to information returns and payee statements due on or after Jan. 1, 2024. 

 

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