Congress finally repealed the new 1099 reporting rules for business owners and rental property. President Obama signed the law on April 14th.
The current law requires business owners to report on form 1099 payments to service providers who are not incorporated and where the annual amount is $600 or more.
A little known provision was discovered in the Obama Care bill that would have expanded the 1099 requirement to both payments to corporations and for the purchases most products. This would have been a major burden on small businesses and it was doubtful that it would have really cut the tax cheating that the bill was aiming to stop.
Similarly, the increased 1099 reporting for landlords that was scheduled to go into effect in 2012 was repealed.
This is a good start toward repealing one of the most anti-business laws ever passed. In future posts I will go into some of the more ridiculous items of Obama Care that business owners will have to be aware of.
Like any good CPA, I need to add a disclaimer: unfortunately, it is impossible to offer comprehensive tax info over the internet, no matter how well researched or written. And remember, I love my readers but having me bookmarked on your computer doesn’t make you a client: before relying on any information given on this site, contact a tax professional to discuss your particular situation.