Form 1099
Reporting Requirements Repealed
Small Businesses and Landlords Spared from Increased Burden
Part of the Patient Protection and Affordable Care Act (PPACA) would have
required business owners who pay a non-employee taxpayer more than $600 in
any tax year to furnish that taxpayer with a Form 1099 beginning in 2012.
These payments would have included, interest, rents, royalties and amounts
paid for goods or services.
In April or 2011, President Obama signed the Comprehensive 1099 Taxpayer
Protection and Repayment of Exchange Subsidy Overpayments Act of 2011 (HR
4), which repealed the section of the PPACA that enacted these reporting
requirements.
In addition, HR 4 also repealed the Form 1099 reporting requirements
imposed on landlords, which was to take effect in 2011 under the Small
Business Jobs Act of 2010. This provision required persons who received
income from rental property to report payments of $600 or more to service
providers on Form 1099-MISC.
The repeal of these expanded reporting requirements reinstates the old
rules requiring business owners to issue Form 1099-MISC for payments of
$600 or more for rents, services, prizes and awards or other income
payments, excluding payments to corporations.
