1099 Requirements Embedded in Obama's Health Care Bill Repealed
By John L. Hay, Attorney, Gust Rosenfeld PLC
In June of last year, we reported to you that a new law would greatly increase the number of transactions that would need to be reported on a Form 1099, beginning in 2012. Those filing requirements were repealed by the Comprehensive 1099 Taxpayer Protection and Repayment of Exchange Subsidy Overpayments Act of 2011, signed into law on April 14, 2011.
As a result, businesses will not need to file Forms 1099 for the purchases of property. Neither businesses nor individuals will need to file Forms 1099 for payments to corporations. A separate requirement that imposed increased reporting requirements on landlords also was repealed.
The existing requirement that Forms 1099 be filed for payments of compensation and similar payments remains in existence. All other requirements for filing Forms 1099 that existed prior to the new law are still in force, but the penalties for non-compliance have been increased.
For More Information If you have questions about these or any other business issues, please don't hesitate to contact me:
John L. Hay - 602.257.7468 - firstname.lastname@example.org John practices intellectual property, corporate and franchise law.