Last week the Senate proposed a Small Business Jobs Act that includes provisional changes to Tax Information Reporting.  The changes to 1099 reporting are included in the bill as a way to generate revenues to fund the bill and close the Tax Gap.

Specifically, individual penalties for each late filing will double.   And there is new information reporting required on rental income and rental expenses.  To learn more about what is included in the Senate version of the legislation, click here.

The proposed penalty increases have been included  in previous legislation, but it is important to keep an eye on this legislation as it is receiving much attention in both houses of Congress.  If the legislation as currently designed passes, businesses will not only have increased reporting responsibility because of all the new reporting responsibilities (e.g. Corporate Reporting, Cost Basis Reporting, Merchant Reporting), but the penalties for failure to address these responsibilities in a timely fashion will create “double the trouble”.

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