• LinkedIn
  • YouTube
  • Twitter
  • Facebook
  • Google+

Regs supplement info return de minimis safe harbor

Get PDF file

by on
in Office Management,Payroll Management

In 2017, the IRS released guidance on the de minimis safe harbor for minor math errors on W-2s, 1099s, 1095s, etc. However, it left out some details. Proposed regulations fill in those blanks, by setting a time limit for recipients to elect out of the safe harbor and clarifying the circumstances under which you don’t have to notify recipients who want to make an election. The regs generally apply to returns required to be filed or furnished after Dec. 31, 2016. (83 F.R. 52726, 10-17-18)

Smooth sailing. The safe harbor is the default—recipients must elect that the safe harbor not apply. It applies when inadvertent math errors on W-2s, 1099s, 1095s or other information returns are no more than $100 or $25 in the case of withholding or backup withholding. It doesn’t apply to intentional errors that misreport dollar amounts, or if you fail to file forms or furnish recipients with their copies.

The proposed regs clarify t...(register to read more)

To read the rest of this article you must first register with your email address.

Email Address:

Leave a Comment