1099 Repeal Advances
Political Insider
Congress is moving on a relatively fast track to repeal the onerous 1099 reporting requirements enacted in the healthcare reform legislation. Repeal is a priority for NAA/NMHC. Present law requires that businesses remit a Form 1099 only when they purchase more than $600 of services, not goods, and only from unincorporated entities. Under the healthcare legislation, beginning in 2012, businesses would have to file 1099s for $600 or more for both goods and services and to incorporated and unincorporated entities.
On Feb. 17, the Senate approved the FAA reauthorization bill (S 223) that includes a provision repealing the health care law's 1099 requirements. Also on Feb. 17, the House Ways and Means committee passed two 1099 bills. The first (HR 4) would repeal the 1099 requirements enacted in the health care legislation.
The second measure (HR 705) would repeal the health care provisions as well as separate changes enacted last year under a small business law (PL 111-240). Those changes went into effect in 2011 and require passive real estate owners to comply with all present-law 1099 requirements.
While Obama initially called for repeal in his State of the Union speech, his FY 2012 budget proposal actually retains the requirement that 1099s be issued for all services purchased in excess of $600 from both unincorporated entities and corporations. It would simply eliminate the need to issue a 1099 for goods purchased in excess of $600.
An NAA/NMHC guidance document on the two different 1099 provisions is available at www.naahq.org/governmentaffairs.
On Feb. 17, the Senate approved the FAA reauthorization bill (S 223) that includes a provision repealing the health care law's 1099 requirements. Also on Feb. 17, the House Ways and Means committee passed two 1099 bills. The first (HR 4) would repeal the 1099 requirements enacted in the health care legislation.
The second measure (HR 705) would repeal the health care provisions as well as separate changes enacted last year under a small business law (PL 111-240). Those changes went into effect in 2011 and require passive real estate owners to comply with all present-law 1099 requirements.
While Obama initially called for repeal in his State of the Union speech, his FY 2012 budget proposal actually retains the requirement that 1099s be issued for all services purchased in excess of $600 from both unincorporated entities and corporations. It would simply eliminate the need to issue a 1099 for goods purchased in excess of $600.
An NAA/NMHC guidance document on the two different 1099 provisions is available at www.naahq.org/governmentaffairs.
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