President Signs Repeal of Expanded 1099 Requirements

As expected after a great public outcry and recent action in Congress, on April 14, 2011 President Obama signed into law the Comprehensive 1099 Taxpayer Protection and Repayment of Exchange Subsidy Overpayments Act of 2011 (HR 4; 1099 Act), which repeals both the expanded Form 1099 information reporting requirements and also the 1099 reporting requirements imposed on taxpayers who receive rental income. This removes the requirement to provide 1099s to corporations (other than law firms) and for the purchase of products and tangible property and reverts to the 1099 reporting requirements to the existing rules.