Obama Signs Bill Repealing New 1099 Requirements

The President has now signed H.R. 4, the bill repealing the new Form 1099 requirements that were part of the healthcare reform bill.

Now persons in business (including individuals) will not have to issue a Form 1099 to all persons from whom they bought more than $600 in goods from during the year.

The full text of H.R. 4 is below. The new reporting requirements were set to become effective January 1, 2012, and would have required anyone in business to issue a Form 1099 to anyone they purchased more than $600 in goods from during the year. Freelance writers, for example, would have had to issue Forms 1099 to Apple Computer when they bought a new computer.

Thankfully, businesses will now not be burdened with this paperwork.

H.R.4

One Hundred Twelfth Congress

of the

United States of America

AT THE FIRST SESSION

Begun and held at the City of Washington on Wednesday,

the fifth day of January, two thousand and eleven

An Act

To repeal the expansion of information reporting requirements for payments of $600 or more to corporations, and for other purposes.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

This Act may be cited as the `Comprehensive 1099 Taxpayer Protection and Repayment of Exchange Subsidy Overpayments Act of 2011′.

SEC. 2. REPEAL OF EXPANSION OF INFORMATION REPORTING REQUIREMENTS TO PAYMENTS MADE TO CORPORATIONS AND TO PAYMENTS FOR PROPERTY AND OTHER GROSS PROCEEDS.

(a) Application to Corporations- Section 6041 of the Internal Revenue Code of 1986 is amended by striking subsections (i) and (j).

(b) Payments for Property and Other Gross Proceeds- Subsection (a) of section 6041 of such Code is amended–

(1) by striking `amounts in consideration for property,’, and

(2) by striking `gross proceeds,’ both places it appears.

(c) Effective Date- The amendments made by this section shall apply to payments made after December 31, 2011.

SEC. 3. REPEAL OF EXPANSION OF INFORMATION REPORTING REQUIREMENTS FOR RENTAL PROPERTY EXPENSE PAYMENTS.

(a) In General- Section 6041 of the Internal Revenue Code of 1986 is amended by striking subsection (h).

(b) Effective Date- The amendment made by this section shall apply to payments made after December 31, 2010.

SEC. 4. INCREASE IN AMOUNT OF OVERPAYMENT OF HEALTH CARE CREDIT WHICH IS SUBJECT TO RECAPTURE.

(a) In General- Clause (i) of section 36B(f)(2)(B) of the Internal Revenue Code of 1986 is amended to read as follows:

`(i) IN GENERAL- In the case of a taxpayer whose household income is less than 400 percent of the poverty line for the size of the family involved for the taxable year, the amount of the increase under subparagraph (A) shall in no event exceed the applicable dollar amount determined in accordance with the following table (one-half of such amount in the case of a taxpayer whose tax is determined under section 1(c) for the taxable year):

——————————————————————————————————-

`If the household income (expressed as a percent of poverty line) is: The applicable dollar amount is:

——————————————————————————————————-

Less than 200% $600

At least 200% but less than 300% $1,500

At least 300% but less than 400% $2,500.’.

——————————————————————————————————-

‘.

(b) Effective Date- The amendment made by this section shall apply to taxable years ending after December 31, 2013.

Speaker of the House of Representatives.

Vice President of the United States and

President of the Senate.

END

 

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About Joe Wallin

Joe Wallin focuses on emerging, high growth, and startup companies. Joe frequently represents companies in angel and venture financings, mergers and acquisitions, and other significant business transactions. Joe also represents investors in U.S. businesses, and provides general counsel services for companies from startup to post-public.
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