It's finally official. Enhanced 1099 reporting is dead.
On April 14 President Obama signed into law H.R. 4, the Comprehensive 1099 Taxpayer Protection and Repayment of Exchange Subsidy Overpayments Act of 2011.
This erases from the tax code the enhanced 1099 reporting rule.
This provision, created as a way to pay for health care, that in 2012 would have required submit to the IRS a Form 1099 for payments made to any single vendor for goods and services totaling more than $600 a year.
Also gone thanks to the president's signature is a similar reporting requirement, as part of the Small Business Jobs Act of 2010, that applied to those receiving rental income from real estate.
To make up the money lost by nullifying the original 1099 expansion, the new law raises the amount of a health care tax credit, which will be available beginning in 2014, that can be recaptured from taxpayers in cases of overpayment.
The Joint Committee on Taxation has estimated that the new offset will raise $24.9 billion over 10 years and that repealing the 1099 reporting requirements will cost $24.7 billion over 10 years.
Related posts:
- Bill to end expanded business 1099 reporting clears Congress
- 1099 expanded reporting halfway gone
- Senate trying to repeal expanded business 1099 reporting … again
- Form 1099 repeal fails yet again
- Senate uses Form 1099 as political bludgeon
- Repeal of new Form 1099 reporting rule back
in Congressional sights - Senator slams SBA for not taking a stand
on new Form 1099 reporting rule - Lawmakers seek repeal of new 1099 forms
- Effort to repeal 1099 reporting fails
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