The IRS has recently clarified the rules regarding failure to report reportable transactions and clarified the penalties for failing to do so. There had previously been some uncertainty around the issue, specifically how provisions in the Small Business Jobs Acts of 2010 had affected the regulations and the penalties.
The IRS has since clarified the situation. Failure to report reportable transactions means failing to include any information required by the Internal Revenue Code when submitting a return or other statement.
The new regulations the IRS released have clarified several issues such as the window for leniency on failure to file and the penalty amount for failure to file, but the IRS has not yet clarified other issues such as how exactly those penalties are computed.
For more information on failure to report cases or other IRS and tax related legal concerns, contact the Chicago Tax Lawyers at Horowitz & Weinstein.