IRS Advisory Committee Issues Recommendations

The IRS’s Information Reporting Program Advisory Committee has released a report outlining recommendations on a wide range of tax administration issues, including creating new forms and instructions, and reporting of a customer’s basis in securities transactions.

Among the key recommendations are creating a new form and modified rules on information reporting of payments that are made to settle payment card and third-party network transactions. The committee also advised the IRS to provide more guidance on tax information reporting and withholding, and to create online Form W-4 instructions for non-resident aliens.

Other recommendations involved withholding on certain payments that are made by government entities, and to provide additional guidance to government entities that must comply with the withholding provisions. The committee also said payers should be permitted to issue payee statements showing only the last four digits of a payee’s Taxpayer Identification Number.

For more information, visit http://www.irs.gov/taxpros/article/0,,id=214434,00.html.