IRS TAX REPORTING & PENALTIES

NEW YORK | June 30, 2015

Summary

On June 29, President Obama signed into law the Trade Preferences Extension Act of 2015. The provision doubles the penalties for failure to file correct tax information returns and provide payee statements. The provision will be effective for returns and statements required to be filed after December 31, 2015.

Key Points:

  • Most information returns and statements for 2015, which are required to be filed in early 2016, will be subject to the new penalties.  
  • The impact of the increased penalties will affect a wide range of information returns and statements, including Form W-2s, all types of Form 1099, and Forms 1042 and 1042-S.
  • The IRS has also made changes to the Foreign Account Tax Compliance Act (FATCA), enacted in 2010 to target non-compliance by US taxpayers using foreign accounts.
  • Clients are advised to send any IRS penalty notice or CP2100 (B notice) they receive to the Tax Department, at taxcompliance@astfinancial.com.

Important Regulatory Deadlines:

Issue Type

Recipient

IRS

1099-DIV

January 31st

March 31st

1099-INT

January 31st

March 31st

1099-MISC

January 31st

March 31st

1099-B

February 15th

March 31st

480.6B and 480.6C

(Filed by client to PR authorities)

February 28th

February 28th

Form 2439 (Filed by client)

February 28th

February 28th

945-return

N/A

January 10th

1042-return

N/A

March 15th

1042-S

March 15th

March 15th

*If the regular due date falls on a Saturday, Sunday, or legal holiday, the filing is extended to the next business day.  

How is AST Ensuring Compliance?

As a transfer agent for public issuers, AST continuously tracks regulatory changes to help ensure that our clients are aware of and take steps to comply with relevant laws and regulations. We will continue to keep you informed on timely and relevant subjects through our regulatory client updates and educational webinars.

If you have any questions or concerns regarding this update, reach out to your Relationship Manager. Thank you for your continued partnership.

 

DISCLAIMER: This communication is based on current public information that we consider reliable, including data and statements made by third parties. AST is not responsible for any errors, omissions or inaccuracies contained in this update or any liabilities that may result from reliance thereon. Nothing in this update should be considered or used as legal or financial advice.