It’s that time of the year when the season turns from the summer heat to falling leaves, cooler temperatures and in some parts of the United States a brisk wind. For those of us who find ourselves in the tax information reporting business, that brisk wind isn’t just whipping outside our working walls, but instead, through our inbox. As the calendar turns to October, we know those chills down our spines can only be related to one thing, the arrival of the dubious CP2100 and CP2100A listings. More commonly referred to as “B” Notices, they represent the IRS’ equivalent of a midterm report card to the payer community responsible for tax information reporting. The final report card being the penalty notice process that occurs the following year.

If you read my last post you know the Obama administration has proposed eliminating the exclusion on payments to corporations (it’s in the Green Book starting on page 89).  We wanted to direct your attention to a few commentary pieces that may help in understanding the positions that industry are taking on this proposal. The referenced articles are the work and opinions of their respective authors and don’t represent the opinions of Convey.

We have been getting many questions about changes that we foresee in TY2010. The best place for us to point everyone right now is the Green Book published by the department of the treasury outlining the new revenue proposals put forth by the administration. Some of the proposed changes go straight to the information reporting program and will mean more work for all of us involved in 1099 reporting going forward. Relating to 1099’s here is my take on the most important proposed changes: