NOTE: This headliner is current through the publication date. Since changes may have occurred, no guarantees are made concerning the technical accuracy after the publication date.
Headliner Volume 206
June 14, 2007
EFFECTIVE AUGUST 2007 NOTICE 972CG, NOTICE OF PROPOSED CIVIL PENALTY, WILL BE DISTRIBUTED ON CD/DVD
Beginning in August 2007, the IRS will distribute Notice 972CG, Proposed Penalties for Missing and Incorrect Information Return Documents, with more than 250 inaccurate identification numbers on CD or DVD for the 2007 processing year or 2005-tax year.
Previously, the IRS transmitted information return penalty notices via tape cartridges on magnetic media as required by Internal Revenue Code Section 6011(e) (1).
Notice 972CG provides a listing of the information returns filed with missing or incorrect name/TIN combinations. Notice 972CG also may include proposed penalties for late filing and failure-to-file information returns on magnetic media or via electronic media.
IRS is modifying the electronic distribution of the information return penalty notices to replace the shipment of tape cartridges. This process should enable payors to extract the information in a manner that is user friendly.
The encrypted CD/DVD can be downloaded. The IRS will also send instructions on how to access the information. The system should bring up a pop-up window with instructions to contact the IRS at (866) 455-7438 extension 5 to receive an encryption key. Callers must have the following information available: TIN, company name, primary or secondary contact and self-assigned PIN number. This encryption key is necessary to unlock your CD/DVD.
The Filing Information Returns Electronically, or FIRE, system is set up for financial institutions and others to file Information Return Forms 1042-S, 1098, 1099, 5498, 8027 or W-2G. An Information Return is a tax document used to report certain types of payments made by financial institutions and others who make payments as a part of their trade or business as required by Internal Revenue Code regulations.
For information on more electronic options visit IRS.gov and click on Electronic IRS, a centralized source for all IRS electronic options and electronic tasks that can be accomplished online.
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