Barter Industry Fortunate To Have IRTA’s Whitney Working On Their Behalf

IRTA Executive Director Ron Whitney continued his efforts to alleviate the IRS non-matching TIN problems many trade exchange owners are currently suffering through. Meetings with IRPAC (Information Reporting Program Advisory Committee) resumed on January 26 in Washington (DC) where he continued to push for implementation of the recommendations that were presented at the October 24, 2007, meeting.

Recommendations from last year’s meeting report stated that:

·         New language be considered for the B-Notices that are specific to the barter industry, and or;

·         Publication 1281 be amended to reflect the issues unique to the barter industry.

Additionally, Whitney met with Nina Olson, National Taxpayer Advocate, alerting her to a systemic problem the barter industry is currently experiencing. Many exchanges have reported that they have been hit with civil penalties for non-matching TINs without ever receiving a 972CG Notice of Proposed Penalty Letter.

Rather, these exchanges have received a CP-2100 notice that simply notifies exchanges of the accounts that have non-matching TIN problems, but does not assert a penalty will be forthcoming. Exchanges should receive a 972CG Notice of Proposed Penalty letter after they receive the CP-2100 letter, but in many cases this is not happening, and the cases are going directly to penalty and collection.

Whitney received assurances from Olson that this problem would be “looked into” by the National Taxpayers Advocates office with the hope that it will be corrected soon.

For an update on third-party record-keeping for barter exchanges, click here.