August 5, 1992
TO: TAX MEMBERS NO. 50-92
OPERATIONS MEMBERS NO. 29-92
TRANSFER AGENT ADVISORY COMMITTEE NO. 43-92
RE: IRS ANNOUNCES PENALTY PROGRAM FOR 1990 INFORMATION RETURNS
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The attached Internal Revenue Service Announcement (No.
92-115) states that, in early August, the IRS will send payors
lists of payees whose taxpayer identification numbers ("TINs")
were missing or incorrect on information returns filed with the
IRS for 1990. In an important development, the IRS Announcement
also provides that the IRS will waive the otherwise applicable
$50 per return penalty for filing 1990 returns with missing or
incorrect TINs. Payors are encouraged, however, to use these
listings to correct their records and make any solicitations
required to establish the reasonable cause defense for future
penalties.
Later in August, the IRS will send penalty notices to those
payors who filed information returns late or failed to file on
magnetic media when required to do so. Payors will have 10 days
from the date on the notice to pay the penalty without interest,
unless they can establish reasonable cause for their
improper/late filings.
We will keep you informed of developments.
Keith D. Lawson
Associate Counsel - Tax
Attachment