Clarification for 1099 Questions : Comprehensive 1099 Taxpayer Protection and Repayment of Exchange Subsidy Overpayments Act of 2011

Clarification for 1099 Questions : Comprehensive 1099 Taxpayer Protection and Repayment of Exchange Subsidy Overpayments Act of 2011

Clarification for 1099 Questions

On April 14, 2011, President Obama signed into law H.R. 4, the “Comprehensive 1099 Taxpayer Protection and Repayment of Exchange Subsidy Overpayments Act of 2011.”  This law is very short and basically includes four items. 1) The requirement for rental property owners to issue Form 1099 starting with 2011 payments is repealed as if it never existed. This means landlords do NOT need to issue Form 1099. 2) The requirement for businesses to issue Form 1099 for products starting with 2012 payments is repealed as if it never existed. 3) The requirement for businesses to issue Form 1099 to corporations starting with 2012 payments is repealed as if it never existed. However, the requirement to issue Form 1099 to corporations for attorney’s fees or medical or healthcare services is still in effect. 4) The fourth provision is not a Form 1099 issue and involves a provision dealing with the repayment of overpayments of health care credits for lower income taxpayers and doesn’t start until 2014. If you have questions or need more information, please call us. We would be happy to talk with you at any time.