Quote:
Originally Posted by kerry
I was under the impression that I had to report any income to a single person of over $600 on a 1099 form already. So how has it changed if it doesn't require reporting payments to businesses?
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Kerry,
This was enacted as part of health care reform. 'Twas always the law to send 1099 Misc's to those who provided services greater than $600 in a calendar year. The Health Care bill, as a revenue enhancer (read tax gap closing effort
) extended it to
GOODS also!. This was a totally new provision.
http://money.cnn.com/2010/05/05/smallbusiness/1099_health_care_tax_change/
Now, seven months later, to keep this small business bill "revenue neutral", they figured they'd close it further by making you and other landlords send 1099's to whomever you need to. And yes, you should have already been giving the handyman a 1099. And, yes, software vendors will, with little effort update Q/B, etc. to make your life a little easier. But it'll waste your time to send the hardware store or Lowe's a 1099.
The Health care bill made the compliance reporting for businesses buying goods to begin in 2012 for payments made in 2011. This change to include landlords has the same effecetive dates. My op
incorrectly said it began a year learlier. My error.
They are effective concurrently.
There was an attempt to repeal the original HC provision that went nowhere last month. The Administration opposes it.
Here is the current year 2010 form & instructions.
http://www.irs.gov/pub/irs-pdf/i1099msc.pdf
http://www.irs.gov/instructions/i1099msc/ar02.html