President Obama yesterday (Thursday) signed a bill that repeals the stricter 1099 reporting requirements. Under the stricter requirements, all small businesses would have had to issue 1099s to anyone or any company that they did more than $600 worth of business with. The provisions were part of the Health Care Reform Bill passed last spring, and would have taken effect in 2012. Congress heard major backlash from the smal business community, and wisely passed a bill to repeal the stricter requirements. Read prior Dinesen Tax Times coverage here.
And owners of rental property can rejoice, too. The bill also does away with stricter 1099 reporting requirements that would have taken affect for rental owners this year.