News & Resources

Title

IRSAC Annual Report Addresses Taxpayer First Act, Filing Threshold

BY: Jyme Mariani, Esq. | 11/19/21

At a public meeting on November 17, the IRS Advisory Council (IRSAC) presented its annual report [Publication 5316]. The general report identifies six main issues and contains individual recommendations from its subgroups. Martin Armstrong, CPP; Martin Rule, CPA; Nancy Ruoff, CPA; and Kevin Valuet, CPP, represent APA on IRSAC.

IRSAC Subgroups

In 2019, IRSAC, the Information Reporting Program Advisory Committee (IRPAC), and the Advisory Committee on Tax Exempt and Government Entities (ACT) were consolidated into a single group under IRSAC. IRSAC includes five subgroups. Four reflect the IRS business operating divisions – Small Business/Self-Employed, Large Business and International, Wage and Investment, and Tax Exempt and Government Entities – and the fifth is the new Information Reporting subgroup.

The new Information Reporting subgroup presented recommendations for the first time in 2021. The report states the subgroup was established to ensure that members have an effective forum to raise and discuss information reporting and payroll issues and recommendations.

Issues presented

IRSAC had two main issues that are relevant to payroll. In its report, IRSAC addressed modernization and organizational changes proposed by the IRS to comply with requirements made by the Taxpayer First Act. Members also proposed a safe harbor and delaying the effective date of the lower electronic filing threshold for information returns until the new online Form 1099 filing platform is available in early 2023.

To learn more about federal and state laws, regulations, and information to keep your company's payroll operations in compliance, check out Payroll Source Plus!


Jyme Mariani, Esq., is Managing Editor of Payroll Currently and Senior Manager of Payroll Information Resources for the APA.