Oh, new 1099 reporting requirements, we hardly knew ye…
Remember those new 1099 reporting requirements that caused such a sensation when they were quietly
sneaked slipped burrowed inserted into last year’s health care law? Under the terms of the Patient Protection and Affordable Care Act, businesses would have been required to issue a form 1099 to all vendors who provided goods and services during the year which totaled more than $600. The idea of the provision was to “encourage” reporting (by, you know, requiring it) of transactions thought to be under the radar previously to the tune of $2.5 billion.
Eventually, the story made news when small businesses, in particular, reacted strongly to the amount of paperwork which would be generated under the provision. So, of course, you can imagine Congress’ surprise to find the provision in a bill that they actually wrote, “read” and voted on. And despite the fact that most lawmakers publicly decried the provision, Congress couldn’t manage a repeal.
Fortunately, even Congress couldn’t stand in its own way long enough to keep this on the books. The provision was eventually repealed and on yesterday, President Obama officially signed legislation eliminating the provision.
Also on the President’s desk for elimination? A separate, but similar, tax reporting requirement for landlords. Under the Small Business Jobs and Credit Act, Congress expanded reporting requirements for landlords to include any person who receives rental income from real estate. Prior to the Small Business Jobs Act, only taxpayers who were engaged in rentals as a trade or business were subject to the requirement. The tweak to this requirement was also repealed.
So now, we’re more or less back where we started before Congress got involved. I know *I* feel better. How about you?