On April 14, 2011 President Obama signed into law, legislation to repeal the new Form 1099 information reporting rules. Under the now repealed rules, businesses would have been required to issue a Form 1099 to corporations for goods and services that reach $600 or more per year to each vendor. And, landlords would have been required to issue a Form 1099 to a vendor for services (such as, plumbing, lawn maintenance, rental management, accounting, etc.) when total payments reached $600 or more in a year. These new reporting requirements have now eliminated, so you don’t need to worry about them any longer.
However, Form 1099 reporting is not totally gone. The old rules still apply. Taxpayers operating a trade or business (most rental property is not considered a trade or business under tax law) still need to issue Form 1099 to vendors if the total payments for the calendar year reach $600 or more with the following exceptions:
(a) Payments to corporations
(b) Payments made using debit or credit cards
(c) Payments made to purchase goods
(d) Payments to multiple vendors when the total amount to any single vendor is less than $600
(e) Non-deductible payments made in connection with your personal-use property.
If you have any additional questions or concerns around the new form or would like to speak with one of our professionals, fill in the form below.