II 111th CONGRESS 2d Session S. 3783 IN THE SENATE OF THE UNITED STATES September 14, 2010 Ms. Landrieu (for herself and Ms. Mikulski) introduced the following bill; which was read twice and referred to the Committee on Finance A BILL To amend the Internal Revenue Code of 1986 to increase the threshold amount subject to information reporting at source, and for other purposes.

1.

Short title

This Act may be cited as the Information Reporting Modernization Act of 2010.

2.

Modifications to information reporting at source

(a)

Increase in threshold amount

(1)

In general

Subsection (a) of section 6041 of the Internal Revenue Code of 1986, as amended by the Patient Protection and Affordable Care Act, is amended by striking $600 in the text and heading and inserting $5,000. (2)

Inflation adjustment

Section 6401 of such Code is amended by redesignating subsection (i) as subsection (j) and by inserting after subsection (h) the following new subsection: (i)

Inflation adjustment

In the case of any calendar year after 2012, the dollar amount in subsection (a) shall be increased by an amount equal to— (1)such dollar amount, multiplied by (2)the cost-of-living adjustment determined under section 1(f)(3) for such calendar year by substituting calendar year 2011 for calendar year 1992 in subparagraph (B) thereof. If any amount as adjusted under the preceding sentence is not a multiple of $100, such amount shall be rounded to the nearest multiple of $100.. (b)

Coordination with returns relating to payment card and third party network transactions

Section 6041 of the Internal Revenue Code of 1986, as amended by subsection (a)(2), is amended by redesignating subsection (j) as subsection (k) and inserting after subsection (i) the following new subsection: (j)

Coordination with returns relating to payment card and third party network transactions

This section shall not apply to any amount with respect to which a return is required to be made under section 6050W. . (c)

Enhanced technology

With respect to returns required to be made in calendar years beginning after December 31, 2011, the Secretary of the Treasury shall upgrade the scanning technology of the Internal Revenue Service to allow for the submission of generic 1099–MISC forms downloaded from the Internal Revenue Service website, and shall establish a free online entry and submission mechanism. (d)

Effective date

The amendments made by this section shall apply to amounts with respect to which a return is required to be made in calendar years beginning after December 31, 2011.