[Congressional Bills 114th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3856 Introduced in House (IH)]

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114th CONGRESS
  1st Session
                                H. R. 3856

To amend the Internal Revenue Code of 1986 to provide a safe harbor for 
     de minimis errors on information returns and payee statements.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            October 28, 2015

Mr. Renacci (for himself and Mr. Carney) introduced the following bill; 
         which was referred to the Committee on Ways and Means

_______________________________________________________________________

                                 A BILL


 
To amend the Internal Revenue Code of 1986 to provide a safe harbor for 
     de minimis errors on information returns and payee statements.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Information Reporting Simplification 
Act of 2015''.

SEC. 2. SAFE HARBOR FOR DE MINIMIS ERRORS ON INFORMATION RETURNS AND 
              PAYEE STATEMENTS.

    (a) In General.--Section 6721(c) of the Internal Revenue Code of 
1986 is amended by adding at the end the following new paragraph:
            ``(3) Safe harbor for certain de minimis errors.--
                    ``(A) In general.--If, with respect to an 
                information return filed with the Secretary--
                            ``(i) there are 1 or more failures 
                        described in subsection (a)(2)(B) relating to 
                        an incorrect dollar amount,
                            ``(ii) no single amount in error differs 
                        from the correct amount by more than $100, and
                            ``(iii) no single amount reported for tax 
                        withheld on any information return differs from 
                        the correct amount by more than $25,
                then no correction shall be required and, for purposes 
                of this section, such return shall be treated as having 
                been filed with all of the correct required 
                information.
                    ``(B) Exception.--Subparagraph (A) shall not apply 
                with respect to any incorrect dollar amount to the 
                extent that such error relates to an amount with 
                respect to which an election is made under section 
                6722(c)(3)(B).
                    ``(C) Regulatory authority.--The Secretary may 
                issue regulations to prevent the abuse of the safe 
                harbor under this paragraph, including regulations 
                providing that this paragraph shall not apply to the 
                extent necessary to prevent any such abuse.''.
    (b) Failure To Furnish Correct Payee Statement.--Section 6722(c) of 
such Code is amended by adding at the end the following new paragraph:
            ``(3) Safe harbor for certain de minimis errors.--
                    ``(A) In general.--If, with respect to any payee 
                statement--
                            ``(i) there are 1 or more failures 
                        described in subsection (a)(2)(B) relating to 
                        an incorrect dollar amount,
                            ``(ii) no single amount in error differs 
                        from the correct amount by more than $100, and
                            ``(iii) no single amount reported for tax 
                        withheld on any information return differs from 
                        the correct amount by more than $25,
                then no correction shall be required and, for purposes 
                of this section, such statement shall be treated as 
                having been filed with all of the correct required 
                information.
                    ``(B) Exception.--Subparagraph (A) shall not apply 
                to any payee statement if the person to whom such 
                statement is required to be furnished makes an election 
                (at such time and in such manner as the Secretary may 
                prescribe) that subparagraph (A) not apply with respect 
                to such statement.
                    ``(C) Regulatory authority.--The Secretary may 
                issue regulations to prevent the abuse of the safe 
                harbor under this paragraph, including regulations 
                providing that this paragraph shall not apply to the 
                extent necessary to prevent any such abuse.''.
    (c) Application to Broker Reporting of Basis.--Section 
6045(g)(2)(B) of such Code is amended by adding at the end the 
following new clause:
                            ``(iii) Treatment of uncorrected de minimis 
                        errors.--Except as otherwise provided by the 
                        Secretary, the customer's adjusted basis shall 
                        be determined by treating any incorrect dollar 
                        amount which is not required to be corrected by 
                        reason of section 6721(c)(3) as the correct 
                        amount.''.
    (d) Conforming Amendments.--
            (1) Section 6721(c) of such Code is amended by striking 
        ``Exception for De Minimis Failures to Include All Required 
        Information'' in the heading and inserting ``Exceptions for 
        Certain De Minimis Failures''.
            (2) Section 6721(c)(1) of such Code is amended by striking 
        ``In general'' in the heading and inserting ``Exception for de 
        minimis failure to include all required information''.
    (e) Effective Date.--The amendments made by this section shall 
apply to returns required to be filed, and payee statements required to 
be provided, on or after the date of the enactment of this Act.
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