President Signs Trade Bill without Expanded Tax Reporting
President Barack Obama signed into law trade legislation without an ICBA-opposed provision to increase IRS reporting requirements for community banks and other institutions.
Following ICBA advocacy, the House earlier this month dropped a provision from H.R. 1295 that would have removed the $10 interest-earned threshold and required banks to send a Form 1099-INT to any depositor who earned any amount of interest in a calendar year. It also would have required banks to report to the IRS certain information on all non-interest-bearing accounts.
H.R. 1295 does include a provision that increases penalties on businesses that fail to file correct 1099 information returns. The penalty will not apply to any failure that was due to reasonable cause.