IRPAC’s 2014 Annual Report

advocate-reportThe Information Reporting Program Advisory Committee (IRPAC) is a federal advisory committee that, using public forums, gathers information regarding IRS reporting issues.  Members of the committee come from a cross-section of individuals from the professional community, including tax professionals, financial institutions, small and large businesses, universities and colleges, and securities and payroll firms.

Once a year they submit a report to the Commissioner of Internal Revenue which details new and existing issues needing attention.  IRS Commissioner John Koshinen said, “The IRS values the insight and perspective IRPAC provides.  The committee members have experience working with an incredibly diverse range of individual taxpayers and organizations both large and small.  Their feedback helps us improve tax administration for the nation, and we will study their recommendations closely.”

IRPAC recommendations include the following:

  1. An expansion of the TIN matching program to include filters of all nonwage information returns to which incorrect TIN penalties apply. 
  2. The amendment of Revenue Procedure 2003-9 to provide that after filing an information return other than those types potentially subject to backup withholding, the filer may check the TIN furnished by the payee (or other recipients) against the name/TIN combination contained in the IRS Matching database and receive TIN validation information.
  3. The issuing of a Notice announcing relief from IRC § 6721 and § 6722 incorrect TIN penalties for all nonwage information return types that the TIN Matching Program may not be used to validate payee/recipient TINs.
  4. The addition of a checkbox to Form W-9 and Form W-4P which can be checked by the payee to indicate that permission has been granted to submit the payee’s name and TIN to the IRS TIN Matching Program for validation.
  5. The development of a new premium-level TIN Matching service (in addition to maintaining the current basic TIN Matching Program), that, while requiring an enrollment fee paid to the IRS, would process bulk files submitted through the information return filer’s account on the IRS secure site for information return filing. 

You can access the full report on the official IRS website.

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–. “Information Reporting Program Advisory Committee Issues Annual Report.” 29 October 201