IRS Releases Safe Harbor For De Minimis Errors In Information Reporting

In Notice 2017-09, the IRS provided guidance on the safe harbor for de minimis and inadvertent errors in amounts reported on information returns.

As part of the Protecting Americans from Tax Hikes (PATH) Act of 2015, Congress amended Sections 6721 and 6722 to establish a safe harbor from penalties for failure-to-file correct information returns with the IRS and failure-to-furnish correct payee statements to employees and other service providers for certain de minimis and inadvertent errors. This de minimis safe harbor applies to the forms described in Section 6724(d), which include, among other forms, Forms W-2 and 1099-MISC, required to be furnished after Dec. 31, 2016 on which compensation and employment tax withholding are reported to service providers.