If You Abhor 1099 Reporting As Much as I Do,Today Is Your Lucky Day
President Obama seems like a nice enough guy, but he’s certainly gotroom for improvement on his soft skills. You’re supposed to offer the good news beforeyou hit’em with the bad, not theother way around.
Just days after causing a collective heart attack in America’s country clubsby proposing a$1 trilliontax increase targeting the wealthy,the Presidentgave one back by signinginto law a repeal of onerous 1099 reporting requirements added by the Small Business Jobs Act of 2010.
Long story short, it’s like the 2010 law — which would have added 1099 requirements for payments to corporations and payments forgoods while greatly increasing the reporting burden for rental property owners — never happened.
So in general, reporting on Form 1099 is again only requiredwhen the payoris considered to be engaged in a trade or business. The most common transaction requiring reporting will be payment for services. Payments to corporations continue to be exempt.
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