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 re-
turns and payee statements. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Information Reporting 
Simplification Act of 2015’’. 
SEC. 2. SAFE HARBOR FOR DE MINIMIS ERRORS ON INFOR-
MATION RETURNS AND PAYEE STATEMENTS. 
(a) IN GENERAL.—Section 6721(c) of the Internal 
Revenue Code of 1986 is amended by adding at the end 
the following new paragraph: 
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‘‘(3) SAFE HARBOR FOR CERTAIN DE MINIMIS 
ERRORS.— 
‘‘(A) IN GENERAL.—If, with respect to an 
information return filed with the Secretary— 
‘‘(i) there are 1 or more failures de-
scribed in subsection (a)(2)(B) relating to 
an incorrect dollar amount, 
‘‘(ii) no single amount in error differs 
from the correct amount by more than 
$100, and 
‘‘(iii) no single amount reported for 
tax withheld on any information return dif-
fers from the correct amount by more than 
$25, 
then no correction shall be required and, for 
purposes of this section, such return shall be 
treated as having been filed with all of the cor-
rect required information. 
‘‘(B) 
EXCEPTION.—Subparagraph 
(A) 
shall not apply with respect to any incorrect 
dollar amount to the extent that such error re-
lates to an amount with respect to which an 
election is made under section 6722(c)(3)(B). 
‘‘(C) REGULATORY AUTHORITY.—The Sec-
retary may issue regulations to prevent the 
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abuse of the safe harbor under this paragraph, 
including regulations providing that this para-
graph shall not apply to the extent necessary to 
prevent any such abuse.’’. 
(b) FAILURE TO FURNISH CORRECT PAYEE STATE-
MENT.—Section 6722(c) of such Code is amended by add-
ing at the end the following new paragraph: 
‘‘(3) SAFE HARBOR FOR CERTAIN DE MINIMIS 
ERRORS.— 
‘‘(A) IN GENERAL.—If, with respect to any 
payee statement— 
‘‘(i) there are 1 or more failures de-
scribed in subsection (a)(2)(B) relating to 
an incorrect dollar amount, 
‘‘(ii) no single amount in error differs 
from the correct amount by more than 
$100, and 
‘‘(iii) no single amount reported for 
tax withheld on any information return dif-
fers from the correct amount by more than 
$25, 
then no correction shall be required and, for 
purposes of this section, such statement shall be 
treated as having been filed with all of the cor-
rect required information. 
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‘‘(B) 
EXCEPTION.—Subparagraph 
(A) 
shall not apply to any payee statement if the 
person to whom such statement is required to 
be furnished makes an election (at such time 
and in such manner as the Secretary may pre-
scribe) that subparagraph (A) not apply with 
respect to such statement. 
‘‘(C) REGULATORY AUTHORITY.—The Sec-
retary may issue regulations to prevent the 
abuse of the safe harbor under this paragraph, 
including regulations providing that this para-
graph shall not apply to the extent necessary to 
prevent any such abuse.’’. 
(c) APPLICATION
TO
BROKER
REPORTING
OF 
BASIS.—Section 6045(g)(2)(B) of such Code is amended 
by adding at the end the following new clause: 
‘‘(iii) TREATMENT OF UNCORRECTED 
DE MINIMIS ERRORS.—Except as otherwise 
provided by the Secretary, the customer’s 
adjusted basis shall be determined by 
treating any incorrect dollar amount which 
is not required to be corrected by reason of 
section 
6721(c)(3) 
as 
the 
correct 
amount.’’. 
(d) CONFORMING AMENDMENTS.— 
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(1) Section 6721(c) of such Code is amended by 
striking ‘‘EXCEPTION FOR DE MINIMIS FAILURES 
TO INCLUDE ALL REQUIRED INFORMATION’’ in the 
heading and inserting ‘‘EXCEPTIONS FOR CERTAIN 
DE MINIMIS FAILURES’’. 
(2) Section 6721(c)(1) of such Code is amended 
by striking ‘‘IN GENERAL’’ in the heading and in-
serting ‘‘EXCEPTION FOR DE MINIMIS FAILURE TO 
INCLUDE ALL REQUIRED INFORMATION’’. 
(e) EFFECTIVE DATE.—The amendments made by 
this section shall apply to returns required to be filed, and 
payee statements required to be provided, on or after the 
date of the enactment of this Act. 
Æ 
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