The IRS recently released its 2020 Publication 1586 which details reasonable cause regulations and requirements for missing and incorrect Name/TINs. Several changes were made to the document for this tax year, the most notable of which are detailed below.
- Under the Reasonable Cause section, language has been added stating, “mitigating factors or events beyond the filer’s control alone are not sufficient to establish reasonable cause.”
- The IRC 6721 & IRC6722 Penalty Tables have been updated to reflect the 2020 penalty adjustments and increases in maximum penalties for the current tax year. Filing due dates for 2020 and 2021 have also been added to the tables.
- A note has been added explaining that penalty amounts apply separately to each IRC 6721 and IRC 6722.
- A new code, “50”, associated with the 1097-BTC has been added to the list of acceptable codes for Payee B Record field spaces 21-22 (DOC TYPE).
To view the complete publication, click here.