IRS Releases Updated Publication 1586

The IRS recently released an updated version of Publication 1586, Reasonable Cause Regulations & Requirements for Missing and Incorrect Name/TINs. This publication details the information related to penalty notices issued by the IRS (Notice 972CG), the procedure for addressing such notices, and the penalties themselves.

There are a number of updates to the content of the publication, mostly which involve clarifying and elaborating on preexisting language in the publication.

  • Clarified the imposition of multiple penalties in Part II: Penalty for Missing TINs and Incorrect Name/TIN Combinations:
    • Only one penalty will be issued per information return even if there is more than one failure with the respect to the return. The highest penalty amount will always be imposed. However, please note that penalties relating to IRC 6721 and IRC 6722 can be imposed for the same payment.
    • Greater clarification was also added to the de minimis rule for corrections, outlining the qualifications for the rule and the safe harbor exceptions for de minimisdollar amount errors.
  • Clarified penalty notices language in Part IV: Notice 972CG, Noticed of Proposed Civil Penalties:
    • Notice 972CG are not sent to federal agencies. Instead, Notice 972F or Letter 1313 are issued to federal agencies, which said agencies are not required to respond to. Rather, those agencies must correct their records by abiding by the same solicitation rules outlined in this section.
    • A Letter 854C will be issued by the IRS in the event that a filer’s written statement does not establish reasonable cause.
  • The table for penalty amounts relating to Large Businesses and Small Businesses (p. 12) has been updated in format and content. Penalty rates have generally been adjusted to account for inflation.

To review this publication in full, please visit the IRS website by clicking here.

Sales & Use Tax United States
May 17, 2019
Software survey: Sales tax in 2019

Accounting Today quotes Sovos VP of Regulatory Analysis & Design Charles Maniace on the challenges of sales and use tax compliance in 2019.

Read More
Brazil Colombia E-Invoicing Compliance EMEA Italy LATAM Mexico Spain United States
May 17, 2019
Competitive Landscape: E-Invoicing, Worldwide

Gartner names Sovos in its competitive landscape of top e-invoicing compliance technology providers from around the world.

Read More
ShipCompliant United States
May 17, 2019
Amazon planning a deeper dive into alcohol sales? A D.C.-area job posting suggests so.

ShipCompliant by Sovos General Manager Larry Cormier reveals what halted alcohol sales on Amazon in a recent article by the Washington Business Journal.

Read More
E-Invoicing Compliance EMEA United States VAT & Fiscal Reporting
May 17, 2019
Procure-To-Pay’s Tax Conundrum

PYMNTS recent article gets Sovos VP of Strategy Christiaan Van Der Valk’s take on one of the largest challenges for procurement chiefs today.

Read More
E-Invoicing Compliance EMEA Tax Information Reporting United States VAT & Fiscal Reporting
May 17, 2019
From Watch to Know in 2019: How Sovos Enhances Businesses’ Global Tax Compliance Efforts

In his Q&A with Spend Matters, Sovos VP of Strategy Christiaan Van Der Valk discusses how Sovos brings innovation to procurement organizations and is changing the way business is done for the better.

Read More