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Repeal of reporting for payments for goods or other property
This provision, to be effective in 2012, expanded the requirement to file Form 1099 for payments for services to include payments for property, which would include common supplies such as copy paper, paper cups, etc. In addition, payments of "gross proceeds" were also required to be reported. With no definition of what constitutes "gross proceeds", arguably any payment for anything could be subject to the new reporting requirement.
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Repeal of reporting for real estate lessors
This provision, to be effective in 2011, stated that persons receiving rental income from real estate would be treated as engaged in the trade or business of renting property for information reporting purposes. Specifically, rental income recipients making payments of $600 or more to a service provider (for example, a painter or plumber) in the course of earning rental income would have to provide an information return to the service provider and IRS.
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The Act eliminated these laws so that the information reporting rules are now the same as they were before these laws were enacted. |
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In brief, the current law is that persons engaged in a trade or business are required to report payments totaling at least $600 in a single calendar year to a single recipient. The type of payments that most commonly trigger the reporting requirement are payments for services. The most common exemption from reporting these payments is payments made to corporations.
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