House Ways And Means Committee Approves Repeal Of Expanded Form 1099 Provisions
The House Ways and Means Committee approved a bill that would repeal the expanded Form 1099 reporting requirements.
The House bill, called the Comprehensive 1099 Taxpayer Protection and Repayment of Exchange Subsidy Overpayments Act of 2011 (HR 705), available here, would repeal both the expanded information reporting requirements that went into effect with the Patient Protection and Affordable Care Act (PL 111-148), available here.
The expanded the 1099 reporting requirements include all payments aggregating $600 or more in a calendar year to a single payee. The Small Business Jobs Act (PL 111-240), available here, requires individuals who receive rental income to issue Forms 1099 for payments of $600 or more, starting in 2011. HR 705 would repeal both of these recent changes. The increased need for revenue from the growing budget deficient has resulted in an increased budget for the IRS to step up compliance enforcement. The IRSs most recent budget included an additional $1 Billion for increase hiring of IRS auditors and employees.
The attorneys at Fuerst Ittleman are experienced in addressing federal, state, and local tax compliance issues. If you have questions regarding how these changes may affect you, contact Fuerst Ittleman at contact@fidjlaw.com.