1099 Reporting Requirement Repealed

President Obama signed into law a repeal of the expanded Form 1099 reporting requirements applicable to corporations and landlords.

For more than a year, corporations have known that they soon would be subject to 1099 reporting requirements under an expansion of the rules in the health care reform law. The law was to require businesses to file an information return whenever they paid a vendor more than $600 for goods in a single year. This requirement was to be effective for payments made after December 31, 2011.

Additionally, the 1099 reporting requirement was expanded in September 2010 to require rental real estate landlords to file 1099s to report payments made to service providers during the year. This provision would have required recipients of rental income who made payments of $600 or more per year to a service provider, such as a plumber, painter, accountant, or property manager, to issue a Form 1099 to the service provider. This requirement was to be effective for payments made after December 31, 2010.

With the enactment of repeal, both of these reporting requirements are repealed as if they never became law.