Expanded 1099 Reporting Requirements REPEALED


April 15, 2011

As expected, the burdensome Form 1099 reporting requirements included in the 2010 Patient Protection and Affordable Care Act (PPACA) and the 2010 Small Business Jobs Act (SBJA) have been repealed. On April 14th, President Obama signed the Comprehensive 1099 Taxpayer Protection and Repayment of Exchange Subsidy Overpayments Act of 2011, retroactively repealing:

• The mandate for businesses to issue 1099s for payments made to companies (e.g. vendors) for merchandise purchased in aggregate of more than $600 annually. (PPACA)


• The mandate for real property owners receiving rental income to issue 1099s for rental expense payments (e.g. services by plumbers, roofers, etc.) in aggregate of more than $600 annually. (SBJA)

Moving forward, it’s business as usual as it relates to 1099 reporting:

• Business owners must continue to issue 1099s to individuals (e.g. contractors) for services rendered in excess of $600 annually. Businesses also must report payments made for attorneys’ fees and to corporations that provide certain medical or healthcare services.


• Landlords must continue to report interest, rents, royalties and other gains or income in excess of $600 annually. Landlords with activities that amount to a trade or business are still required to report payments of $600 or more to service providers.

For more information on this or other tax-related topics, please contact a member of your service team.

Notwithstanding that these materials do not constitute legal, accounting or other professional advice, as may be required by United States Treasury Regulations and IRS Circular 230, you should be advised that these materials are not intended or written to be used, and cannot be used by you or any other person, for the purpose of avoiding penalties that may be imposed under federal tax laws. No written statement contained in these materials may be used by any person to support the promotion or marketing of or to recommend any federal tax transaction(s) or matter(s) addressed in these materials, and any taxpayer should seek advice based on the taxpayer’s particular circumstances from an independent tax advisor with respect to any such federal tax transaction matter.