2022 Standard Federal Tax Reporter (CCH) Committee Reports on P.L. 101-239 (Omnibus Budget Reconciliation Act of 1989), Congress (United States)

Summary

• Committee Report: Standard Federal Tax Reporter (2022), Committee Reports on P.L. 101-239 (Omnibus Budget Reconciliation Act of 1989)

  .60 Information reporting penalties. 

  The bill consolidates the waiver standards relating to information reporting into one provision. The bill provides that any of the information reporting penalties may be waived if it is shown that the failure to comply is due to reasonable cause and not to willful neglect. The committee intends that for this purpose, reasonable cause exists if significant mitigating factors are present, such as the fact that a person has an established history of complying with the information reporting requirements. The separate, higher waiver standard under present law for interest and dividends is repealed. Interest and dividend returns and statements are consequently subject to this general waiver standard. The committee intends that payors of interest and dividends that comply with the present-law due diligence standards be ...