ALERT - Expanded IRS 1099 Reporting Requirements RepealedPrint PDFShare
Concerned about the tax compliance and administrative burden imposed on taxpayers, particularly small businesses, Congress passed - and the President signed - legislation repealing certain IRS information reporting requirements enacted in 2010. The new law dubbed The Comprehensive 1099 Taxpayer Protection and Repayment of Exchange Subsidy Overpayments Act of 2011 (H.R. 4 and Pub. No. 111-148), retroactively repealed the recently expanded IRS information reporting rules that would have required the filing of IRS Form 1099 for:
- payments of $600 or more for tangible goods by all businesses;
- expense payments of $600 or more made by landlords with respect to rental property.
In other words, the IRS information reporting rules effectively revert to the way they read before the enactment of the expanded IRS rules. To pay for the cost of repeal, estimated at approximately $25 billion over ten years, the legislation increases the amount of overpayment of health care credit that is subject to recapture.
If you have any questions on the repeal, please contact Jerry Geis at 651.808.6409 or via e-mail.