Tax Info Reporting Committee Recommends Changes

An advisory committee on tax information reporting has recommended a number of changes for the Internal Revenue Service to make to improve taxpayer identity protection, disaster reporting and other matters.

The Information Reporting Program Advisory Committee made more than 60 recommendations on a broad array of issues and concerns about tax administration. Among the suggestions were masking the Taxpayer Information Number on information-reporting forms. IRPAC also recommended improving instructions for disaster reporting of postponed annual tax year contributions to IRAs.

In addition, the committee suggested that the IRS improve the Form 990 return for tax-exempt organizations. It said the IRS should provide more clarity on reporting compensation and completing schedules for hospitals and tax-exempt bonds. It also said the IRS should provide guidance for taxpayers receiving Form 1099 or 1042-S0 and Schedules K-1 for the same partnership income. In addition, it recommended that the IRS provide tax professionals with hypothetical situations that describe Circular 230 violations and their corresponding sanction ranges.

IRPAC was established in 1991 and includes an advisory group of representatives from the taxpayer community and tax practitioners interested in the Information Reporting Program.