Congress Repeals 1099 Information Reporting Requirements

On April 5, Congress voted to repeal the expanded Form 1099 reporting requirements that were added in 2010. In 2010, part of the Patient Protection and Affordable Care Act included provisions to expand the 1099 reporting requirements in 2012 to include payments for goods or other property, and to include corporations, who did not have a filing requirement previously. The Small Business Jobs Act, also passed in 2010, included provisions, starting in 2011, to those receiving rental income from real estate. The new law, once signed by the President, will repeal all of these provisions and the 1099 rules will go back to the rules that are currently in place. The current rules for 1099 reporting generally include payments made from your trade or business to non-corporate entities for services performed.

If you have any questions on whether you can use these beneficial tax savings for your company, please don’t hesitate to call Marie Jett or Larry Brodnik.