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Update: Congress pushes for corporate matching.

"Get the show on the road," says a House of Representatives Government Operations Committee report on corporate document matching to the IRS. The General Accounting Office has urged Congress to begin requiring payers of interest, dividends and other payments to corporations to file information returns; the IRS then could match the payments against amounts reported on recipients' corporate income tax returns.

The report concludes corporate matching could bring in $5 to $7 billion over the next seven years and could close the growing compliance gap. However, the committee wants to know more about the costs and benefits of corporate matching. The report urges the IRS to move on the program "as expeditiously as possible." The committee wants the IRS to

1. Complete its prototype study of voluntarily filed information returns, and analyze the results of the study; the analysis should include compliance costs for both payers and corporations.

2. Start a pilot matching program by 1992 if the prototype study results are successful. If the pilot program is successful, put corporate matching into effect and include both S corporations and partnerships.

Once the prototype study is completed, Congress should enact provisions requiring the payers of such corporate payments to file information returns, according to the report.
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Title Annotation:of documents to the Internal Revenue Service
Author:Wagenbrenner, Anne
Publication:Journal of Accountancy
Article Type:Brief Article
Date:Feb 1, 1992
Words:206
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