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1099 CHANGES CHANGED

Posted by Admin Posted on Apr 20 2011

In 2010, Congress increased the 1099 reporting requirements on businesses - operaters of rental real estate were brought into the fold for the first time, and 1099 reporting was expanded to all payments to vendors aggregating more than $600 in a year.

The complaints were immediate and loud.  Congress haggled for a year, agreeing the provisions had to be repealed but disagreeing on how to pay for repeal.  (The assumed added revenue from the additional reporting was used to offset the cost of health care reform and tax benefits for businesses.) -- Democrats in the Senate favored a vague mandate to the GAO to cut spending, while Republicans in the House wanted to improve collections of excess reimbursements under health care reform.  The Senate eventually went along with the Republican version, and President Obama signed the repeal law.

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