Expanded Form 1099 Reporting Rules repealed
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The Patient Protection and Affordable Care Act of 2010 expanded the Form 1099 reporting requirements. The expanded rules required businesses to report the payment of $600 or more to a single vendor for both goods and services. The expanded rule also repealed the exception for payments to corporations. The 2010 Small Business Jobs Act further expanded the reporting rules to require landlords to report payments of $600 or more to a vendor.
The expanded reporting requirements of both of those Acts were repealed on April 14 of this year. The Form 1099 reporting rules revert to those in effect before the enactment of the 2010 Acts. In general, those rules require businesses to report payments of $600 or more to a service vendor. Payments to corporations are generally exempt unless the corporation is a law firm or the payments were for medical services. The rental of real property is not considered as a business for purposes of the reporting rules.
If you have any questions or concerns, please contact me or any Kaufman, Rossin professional.
