Daily Tax Update - April 27, 2016: IRS Issues Final Rules on Material Adviser Penalties

IRS Issues Final Rules on Material Adviser Penalties:  Today the IRS released final regulations relating to the penalty under section 6708 for failing to make available lists of advisees with respect to reportable transactions.  Section 6708 imposes a penalty upon material advisors for failing to make available, upon written request, the list required to be maintained by section 6112 within 20 business days after the date of such request.  The final regulations adopt, with some changes, proposed regulations issued on March 8, 2013.

Limited Penalty Relief for Filers of Form 1098-T:  In an announcement (Announcement 2016-17) released today, the IRS provided notice that it will not impose penalties under section 6721 or 6722 on eligible educational institutions with respect to Forms 1098-T, Tuition Statement, required to be filed and furnished for the 2016 calendar year under section 6050S, if the institution reports the aggregate amount billed for qualified tuition and related expenses on Form 1098-T instead of the aggregate amount of payments received as required by section 212 of the Protecting Americans from Tax Hikes Act of 2015.  The penalty relief is limited to 2016 Forms 1098-T required to be filed by eligible educational institutions by February 28, 2017 (or March 31, 2017, if filed electronically), and furnished to recipients by January 31, 2017.  

House Ways and Means to Consider Three Bills Tomorrow:  The House Ways and Means Committee is scheduled to mark up three tax-related bills tomorrow.  One bill (H.R. 3832) would require the IRS to notify victims of identity theft and impose new criminal penalties on thieves.  Another bill (H.R. 5053) would limit contributor information reported by a section 501(c) tax-exempt organization on its annual information return.  The third bill (H.R. 3209) would allow the IRS to share taxpayer information with the police to help find missing children.