President Obama seems like a nice enough guy, but he’s certainly got room for improvement on his soft skills. You’re supposed to offer the good news before you hit ’em with the bad, not the other way around.
Just days after causing a collective heart attack in America’s country clubs by proposing a $1 trillion tax increase targeting the wealthy, the President gave one back by signing into law a repeal of onerous 1099 reporting requirements added by the Small Business Jobs Act of 2010.
Long story short, it’s like the 2010 law — which would have added 1099 requirements for payments to corporations and payments for goods while greatly increasing the reporting burden for rental property owners — never happened.
So in general, reporting on Form 1099 is again only required when the payor is considered to be engaged in a trade or business. The most common transaction requiring reporting will be payment for services. Payments to corporations continue to be exempt.
