In April both the expanded Form 1099 information reporting requirements mandated by last year's health care legislation and the 1099 reporting requirements imposed on taxpayers who receive rental income enacted as part of last year's Small Business Jobs Act (PL 111-240) were officially repealed.
The potential impact of these laws was discussed with many of you during tax season and was the subject of our e-YWM Alert #2. These acts expanded 1099 reporting requirements to include all payments from businesses aggregating $600 or more per year to a single payee, including corporations and payments made for property starting with payments made in 2012. Additionally, the expansion would have subjected all individuals who received rental income to be subject to the 1099 reporting requirement.
As a result of the repeal individuals who receive rental income are in the same position as if the expanded reporting requirements had never been enacted. All other businesses are subject to the previous 1099 reporting rules, although the increased penalties for failure to timely file an information return were effective January 1, 2011 and were not included in the repeal.
If you have any questions please do not hesitate to contact us.
No comments:
Post a Comment