On April 5, 2011, the Senate approved the “Comprehensive 1099 Taxpayer Protection and Repayment of Exchange Subsidy Overpayments Act of 2011.” The measure retroactively repeals expanded Form 1099 information reporting rules added by recent legislation. (It passed the House on March 3)
In English: For payments made after Dec. 31, 2011, the Act repeals the requirement for payments to corporations, payments for goods or other property, and for payments made after Dec. 31, 2010. The Act also repeals requirements placed on rental income from real estate.
If you remember, there was a new requirement for business owners to report on a 1099, any amount paid to a corporation that totaled $600.00 or more in a single year. Further, there were new requirements for owners of rental properties.
In other words, under the Act, the information reporting rules effectively revert to the way they read before enactment of PPACA and the Small Business Jobs Act of 2010.
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