About a week ago I blogged about a new federal law that will require landlords to issue 1099’s to any individual or business that provides the landlord with more than $600 in services in any 12 month period. While this new law isn’t going away anytime soon, another new federal 1099 reporting law has fortunately been repealed.
Included in the new health care reform law known as the Patient Protection and Affordable Care Act (more commonly referred to as “Obamacare”), was a provision that would have required landlords (and other small businesses) to report to the IRS any purchases of goods over $600 per year from any other business or individual.
Under this law, which would have commenced in 2012, a landlord would have been required to issue 1099’s to Home Depot and Menard’s if the landlord purchased more than $600 in goods from either of these stores. A landlord would have also been required to issue 1099’s to the municipal water department and WE Energies — since water and electricity are considered to be “goods.” The additional paperwork required of landlords under this new law would have cleared several rain forests.
Fortunately, the U.S. Senate — with broad bipartisan support — approved an amendment on February 2nd, 2011 to repeal the expanded 1099 information reporting requirements contained in the health care reform law.
So while a landlord will still be required to 1099 business and individuals that supply more than $600 in services within a 12 month period, landlords will no longer be required to 1099 a business or individual that supplied more than $600 in goods in that same 12 month period.