Expanded Form 1099 Reporting Repealed

On April 14, 2011, Pres. Obama signed legislation repealing the expanded Form 1099 reporting requirement that was part of the 2010 health care law.  The expansion was to include information reporting for payments of $600 or more each year to vendors of goods in addition to services, and to also require reporting to corporations (previously exempt from receiving Form 1099s) beginning with payments made in 2012.  The repeal reverts to the former Form 1099 reporting requirements for payments of $600 or more to non-corporations for services (except that payments to corporations for legal services and health care must be reported).

In addition, the expanded Form 1099 reporting requirement for renters of real estate that was enacted as part of the Small Business Jobs Act of 2010 is repealed.  The expansion was to include information reporting for payments of $600 or more each year for vendors of goods in addition to services, and to also require reporting to corporations (previously exempt from receiving Form 1099s), beginning with payments made in 2011.  In addition, the expansion applied to all landlords, not just those who were in the business of renting property.  The repeal reverts to the former Form 1099 reporting requirements for landlords in the business of renting property to report payments of $600 or more to non-corporations for services (except that payments to corporations for legal services and health care must be reported).