Repeal of 1099 Reporting Rules Passes the Senate (impacts gold and silver)

boston globe ^ | April 8, 2011 04:04 PM | Jamie Downey

[dennisw]

US Businesses can now breathe a big sigh of relief. On Tuesday, the US Senate passed legislation to repeal the expanded 1099 information tax return requirements which were part of last years health care legislation as well as the 1099 reporting requirements for individual taxpayers that receive rental income. The US House of Representatives had already passed the same bill on March 3rd, so it now will go to the President for his signature.

The repeal addresses two pieces of legislation that were enacted in 2010, the Patient Protection and Affordable Care Act (PPACA) and the Small Business Jobs Act. Under PPACA, businesses would be required to send a 1099 to virtually all vendors in which purchases exceeded $600. The Small Business Job Act further expanded 1099 reporting, by subjecting small landlords to send 1099 (previously individual landlords were exempt from 1099 reporting).

Nearly all business organizations supported the repeal efforts as costs of compliance were expected to be significant. Both Senator Scott Brown and Senator John Kerry voted for the repeal. The entire Massachusetts Congressional delegation voted against the repeal. It is expected that the President will sign the bill into law.

[dennisw]

This 1099 law was snuck in as part of Obama-care and would have instituted very onerous 1009 reporting for American small business....for tradesmen and others. Also would have been a form of reporting on silver and gold sales/purchases that you preferred to be anonymous private

[30Moves]

It still impacts landlords however.

Since I am a reluctant landlord and am new to the game, does anyone know if the 1099s have to be sent out each time you accumulate the $800 per vendor or can one 1099 at the end of the year do the job?

[Lurker]

Well we did have to pass it to find out what’s in it after all.

[dennisw]

It still impacts landlords however>>>>>>

Why would it? The law that was repealed had it so that if you did $600 (not $800) business with a plumber during a reporting year then you and him had to file 1099s. Probably at end of the year

[Georgia Girl 2]

I don’t think so. As far as I know you are off the hook.

[RobRoy]

>>The entire Massachusetts Congressional delegation voted against the repeal.<<

This is the most disturbing part of the whole article. I’m amazed that at least a small fringe contingent of voters in that state are not gunning for those guys. Literally.