Senate Expands IRS Form 1099 Reporting Requirement to Include All Rental Property Owners

CNSNEWS.COM ^ | 9/28/2010 | Chris Neefus

[bbernard]

(CNSNews.com) – Millions of Americans who own rental property are in for a bit of a rude awakening, beginning in January.

Congress has presented a bill to President Obama that would expand the IRS Form 1099 reporting requirements set out in the health-care reform law to include private citizens who own rental property.

The Patient Protection and Affordable Care Act, President Obama’s health care law, requires that small businesses file a Form 1099-MISC with the IRS for any goods they purchase from an outside vendor valued at over $600.

But the new bill, the Small Business Jobs and Credit Act (H.R. 5297), extends the mandate to private individuals who own property from which they receive rental income. Those people would also now have to fill out paperwork reporting any expenditure they make on that property valued over $600 for the year.

Section 2101 of the bill accomplishes this by considering anyone receiving rental income as “engaged in a trade or business.”

[bbernard]

Here is another reason the US needs 16,000 more IRS agents....

[AU72]

Hopey Changey Ping

[Red Badger]

They should call this the SLUM CREATION ACT of 2010....................

[mainsail that]

It’s income no?

[keepitreal]

Another you will know what is in it when you pass it moment.

So now I’ll have to 1099 the mortgage and water companies. Doing my taxes is already a nightmare.

[HiTech RedNeck]

Hey we have pre-crime now, why not pre-audits of taxes?

The stuff that Uncle Sham wants is the same that the rental owner would used to substantiate tax deductions on the rental if audited, but now it has to be reported up front.

[keepitreal]

If they wanted to get to the income, they should have the tenants fill out 1099s. This way landlords are sending 1099s to Home Depot, the utility company and the mortgage company. This is ridiculous.

[PeterPrinciple]

There is one exception to this rule. If you pay by credit card, you will not have to complete a 1099.

In the health care bill, all your credit card transactions will be reported to the federal govt. The federal govt will share this with the states and you will all receive an itemized listing of all the out of state purchases you made and a bill for the use/sales tax you didn’t pay................................... I suspect you will be billed for use tax for you contribution to FR.

States have been wanting this information for a long time, now they got it and you get a bill.

[Buckeye McFrog]

I say bury the IRS in a bilzzard of so may friggin’ 1099’s that they can’t see the front door and crash the system, a la Cloward-Piven.

[null and void]

ping

[tndarlin]

Is this retro to 2010 taxes or going forward to 2011 taxes?

[patton]

Wait - I have to 1099 the City of Norflolk?

Bizarro world.

[mainsail that]

Ooooo, I thought they had to report the income, not send 1099 forms to Home depot :)
That’s insane. I read that purchases made by CC or check will not trigger the requirement, or that a such change was being considered.

[null and void]

Retrotaxes would violate the Constitutional stricture against ex post facto laws...

[MrB]

They really despise independent minded people, now don’t they?

Communist Manifesto plank #1:
1. Abolition of private property and the application of all rents of land to public purposes.

[PeterPrinciple]

I say bury the IRS in a bilzzard of so may friggin’ 1099’s that they can’t see the front door and crash the system, a la Cloward-Piven.

---

They increased the penalty for not filing or filing incorrectly. They don't care if they use the data, they are not using the current 1099’s well. We are all targets, just waiting to see which one they want to shoot at.

Companies are already proposing that they have a data base for you to compare your information so as to avoid penalties for incorrect data. Business identity theft coming your way......................

[MrB]

Clinton did it.

[PeterPrinciple]

Retrotaxes would violate the Constitutional stricture against ex post facto laws...

---

wrong, been done in the past under Clinton.

[Envisioning]

...from the article...“So imagine that you're renting out your starter condo. You pay a property manager, a plumber, a repairman, a locksmith, a condo association, etc. Imagine having to get a taxpayer identification number, order 1099-MISCs from the IRS, fill them out by hand, keep a copy for yourself, send a copy to each payee (from whom you had to get a tax ID number and other information), and then finally take your legitimate rental deduction.

This is b*llshit!

Is it time yet????

[tndarlin]

Retrotaxes would violate the Constitutional stricture against ex post facto laws

Has that stopped anyone in DC before??