Burdensome 1099 rules are repealed
Apr 25, 2011
President Obama has signed a law that repeals twosets of rules that had business owners, companymanagers, and landlords up in arms because of thepaperwork nightmare they created. The rules thatinvolved businesses issuing a blizzard of 1099 formswere created by two laws enacted in 2010. Rentalproperty owners had to begin complying with one ofthe sets of rules this year.
The second set for othertypes of businesses was not scheduled to go into effectuntil next year.The new rules ignited an immediate firestorm ofcriticism, but repealing them took longer than someexpected.Thankfully, all the attempted 1099 rule changes havefinally been quashed by the Comprehensive 1099Taxpayer Protection and Repayment of ExchangeSubsidy Overpayments Act, which was signed into lawon April 14, 2011.Here’s the 1099 story from beginning to end. We’ll startwith the longstanding 1099 rules, which will nowcontinue to apply.Longstanding 1099 rules remain in forceFor many years, businesses have been required toreport various
