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.
