The recent health care reform legislation included a new reporting requirement for businesses. Beginning in 2012, a Form 1099 must be filed with the IRS for payments of $600 or more made to corporations. Previous law required such reporting only for amounts of $600 or more paid to unincorporated businesses.
The “Small Business Jobs Act of 2010” added another reporting requirement, this one to take effect January 1, 2011. Landlords will be required to file Forms 1099 with the IRS for payments of $600 or more made for rental property expenses.
Responding to the complaints from businesses that these new reporting requirements would be very burdensome, Senate Finance Committee Chairman Max Baucus has announced legislation that would repeal both of these provisions.
Stay tuned to see if repeal will actually happen. If it doesn’t, get your business ready for these new requirements.