Bill > HR3856

This bill, the Information Reporting Simplification Act of 2015, amends the Internal Revenue Code to create a "safe harbor" for minor errors on tax information returns and payee statements, which are documents used to report financial transactions and tax withholdings to the IRS and individuals. Specifically, if an information return or payee statement contains incorrect dollar amounts, but no single amount is off by more than $100, and no amount of tax withheld is off by more than $25, then the return or statement will be considered correct and no correction will be required, thus avoiding penalties. This provision aims to simplify tax reporting by allowing for small, insignificant errors without triggering penalties or requiring corrections, though the Secretary of the Treasury can issue regulations to prevent abuse of this new rule.