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New 1099 Requirements Repealed

We previously reported that new and very onerous requirements would be added beginning in 2012 for business 1099 reporting. We thought at the time that the law looked likely to be repealed and indeed it has been repealed.

According to the IRS website: The Comprehensive 1099 Taxpayer Protection and Repayment of Exchange Subsidy Overpayments Act of 2011 eliminated new information reporting requirements that were created by previous legislation. You can read it at the IRS website.

The relevant part is that only existing information reporting requirements remain in effect ie:   Payments of $600 or more for nonemployee compensation made in the course of a trade or business are generally required to be reported on Form 1099-MISC. Certain payments to corporations are required to be reported. See the Instructions for Form 1099-MISC for more information.

Good news for small business owners!

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