Changes for 1099 Reporting – We’re Back To Where We Started

2011 Changes to 1099 Reporting Requirements
February 24, 2011
Small Business Relief From the IRS
May 25, 2011

IRS LogoOn 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.

Please contact us if you are looking for an accountant in the Jacksonville, FL area.

Jo Hagan, CPA
Jo Hagan, CPA
Jo Hagan is the visionary and founder behind Barefoot Accounting, Inc. She's been in private practice helping businesses like yours grow, understand their numbers, handle tax issues, and more for over 15 years. As a mom, wife, and business owner, Jo understands the struggles business owners and entrepreneurs face, and she has a passion for helping people understand what they need to know in order to be successful in business!

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