I 

114TH CONGRESS 

1ST SESSION H. R. 3856 

To amend the Internal Revenue Code of 1986 to provide a safe harbor 

for de minimis errors on information returns and payee statements. 

IN THE HOUSE OF REPRESENTATIVES 

OCTOBER 28, 2015 

Mr. RENACCI (for himself and Mr. CARNEY) introduced the following bill; 

which was referred to the Committee on Ways and Means 

A BILL 

To amend the Internal Revenue Code of 1986 to provide 

a safe harbor for de minimis errors on information returns and payee statements. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Information Reporting 

5 Simplification Act of 2015’’. 

6 SEC. 2. SAFE HARBOR FOR DE MINIMIS ERRORS ON INFOR7 MATION RETURNS AND PAYEE STATEMENTS. 

8 (a) IN GENERAL.—Section 6721(c) of the Internal 

9 Revenue Code of 1986 is amended by adding at the end 

10 the following new paragraph: 


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1 ‘‘(3) SAFE HARBOR FOR CERTAIN DE MINIMIS

2 ERRORS.— 

3 ‘‘(A) IN GENERAL.—If, with respect to an 

4 information return filed with the Secretary— 

5 ‘‘(i) there are 1 or more failures de6 scribed in subsection (a)(2)(B) relating to 

7 an incorrect dollar amount, 

8 ‘‘(ii) no single amount in error differs 

9 from the correct amount by more than 

10 $100, and 

11 ‘‘(iii) no single amount reported for 

12 tax withheld on any information return dif13 fers from the correct amount by more than 

14 $25, 

15 then no correction shall be required and, for 

16 purposes of this section, such return shall be 

17 treated as having been filed with all of the cor18 rect required information. 

19 ‘‘(B) EXCEPTION.—Subparagraph (A) 

20 shall not apply with respect to any incorrect 

21 dollar amount to the extent that such error re22 lates to an amount with respect to which an 

23 election is made under section 6722(c)(3)(B). 

24 ‘‘(C) REGULATORY AUTHORITY.—The Sec25 retary may issue regulations to prevent the 


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1 abuse of the safe harbor under this paragraph, 

2 including regulations providing that this para3 graph shall not apply to the extent necessary to 

4 prevent any such abuse.’’. 

5 (b) FAILURE TO FURNISH CORRECT PAYEE STATE6 MENT.—Section 6722(c) of such Code is amended by add7 ing at the end the following new paragraph: 

8 ‘‘(3) SAFE HARBOR FOR CERTAIN DE MINIMIS

9 ERRORS.— 

10 ‘‘(A) IN GENERAL.—If, with respect to any 

11 payee statement— 

12 ‘‘(i) there are 1 or more failures de13 scribed in subsection (a)(2)(B) relating to 

14 an incorrect dollar amount, 

15 ‘‘(ii) no single amount in error differs 

16 from the correct amount by more than 

17 $100, and 

18 ‘‘(iii) no single amount reported for 

19 tax withheld on any information return dif20 fers from the correct amount by more than 

21 $25, 

22 then no correction shall be required and, for 

23 purposes of this section, such statement shall be 

24 treated as having been filed with all of the cor25 rect required information. 


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1 ‘‘(B) EXCEPTION.—Subparagraph (A) 

2 shall not apply to any payee statement if the 

3 person to whom such statement is required to 

4 be furnished makes an election (at such time 

5 and in such manner as the Secretary may pre6 scribe) that subparagraph (A) not apply with 

7 respect to such statement. 

8 ‘‘(C) REGULATORY AUTHORITY.—The Sec9 retary may issue regulations to prevent the 

10 abuse of the safe harbor under this paragraph, 

11 including regulations providing that this para12 graph shall not apply to the extent necessary to 

13 prevent any such abuse.’’. 

14 (c) APPLICATION TO BROKER REPORTING OF

15 BASIS.—Section 6045(g)(2)(B) of such Code is amended 

16 by adding at the end the following new clause: 

17 ‘‘(iii) TREATMENT OF UNCORRECTED

18 DE MINIMIS ERRORS.—Except as otherwise 

19 provided by the Secretary, the customer’s 

20 adjusted basis shall be determined by 

21 treating any incorrect dollar amount which 

22 is not required to be corrected by reason of 

23 section 6721(c)(3) as the correct 

24 amount.’’. 

25 (d) CONFORMING AMENDMENTS.— 


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1 (1) Section 6721(c) of such Code is amended by 

2 striking ‘‘EXCEPTION FOR DE MINIMIS FAILURES

3 TO INCLUDE ALL REQUIRED INFORMATION’’ in the 

4 heading and inserting ‘‘EXCEPTIONS FOR CERTAIN

5 DE MINIMIS FAILURES’’. 

6 (2) Section 6721(c)(1) of such Code is amended 

7 by striking ‘‘IN GENERAL’’ in the heading and in8 serting ‘‘EXCEPTION FOR DE MINIMIS FAILURE TO

9 INCLUDE ALL REQUIRED INFORMATION’’. 

10 (e) EFFECTIVE DATE.—The amendments made by 

11 this section shall apply to returns required to be filed, and 

12 payee statements required to be provided, on or after the 

13 date of the enactment of this Act. 

Æ 


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