The IRS recently released Bulletin No. 2017-26. The bulletin is noteworthy particularly because part of this Bulletin will be repurposed into Publication 1179. Below is a list of the changes the IRS has specifically highlighted for attention:
Vendor code. The use of a vendor code is encouraged in place of a form printer EINs. See Section 2.1.10.
- Beginning in 2017, withholding agents will be required to assign a unique identifying number to each Form 1042–S filed. See the 2017 Instructions for Form 1042–S for more information.
- Beginning in 2017, withholding agents filing an amended form must indicate the amendment number. See the 2017 Instructions for Form 1042–S for more information.
- The “Pro-Rata Reporting” box was moved from the top of the form (below the title) down to new box 15.
Form 1098. New box 10, number of mortgaged properties. Filers must report the number of properties in excess of one (1) that secure a single mortgage. See the instructions for box 10.
Form 1098–T. For the 2017 calendar year, Announcement 2016–42, available at IRS.gov/irb/ 2016-49_IRB/ar10.html, provides that no penalties will be imposed under section 6721 or 6722 for reporting the aggregate amount billed, instead of the aggregate amount of payments received, for qualified tuition and related expenses. Beginning in 2018, only the qualified tuition and related expenses actually paid can be reported.
Forms 1099–A and 1099–C. T.D. 9793 removes the rule that a deemed discharge of indebtedness for which a Form 1099–C must be filed occurs at the expiration of a 36-month nonpayment testing period.
Form 1099–OID. Box 11 was added to report tax–exempt OID.
Form 1099–S. A new checkbox has been added as box 5 to report the transfer of real estate by a foreign person. Previous box 5, Buyer’s Part of Real Estate Tax, is now box 6.
Form 5498. Report late rollover contributions certified by the participant in boxes 13a and 13b. Report the self-certification code in box 13c.
Form W–2G. The text in box 1 has been changed from “Gross winnings” to “Reportable winnings.” This change clarifies that for certain types of gambling activity, the amount shown in box 1 is gross winnings less the amounts of the wager or buy-in.
To review Bulletin No. 2017-26 in detail, please click [here|https://www.irs.gov/pub/irs-irbs/irb17-26.pdf] to view the release.
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About the Author
Adam Rivera is a member of the Regulatory Analysis Team's Direct Tax division at Sovos. His main areas of focus are Federal and State Tax Withholding and Affordable Care Act (ACA) Reporting. Prior to Sovos, Adam worked as a legislative aide in the Florida House of Representatives. He also has experience in securities law, focusing on securities litigation and researching emerging crowdfunding methods of raising capital. Adam is a member of both the Massachusetts and Florida Bars. He earned his B.A. from the University of Florida and his J.D. from the University of Miami.More Content by Adam Rivera