1099 Filing Requirements Update
As of Thursday, March 3rd, 2011, the House of Representatives passed the Small Business Paperwork Mandate Elimination Act and it is set to go to the Senate. This bill, if passed by the Senate, will only be repealing the 1099 filing requirements that were added with the Health Care Act of 2010. This is not to be confused with the Small Business Jobs Act of 2010 that added rental property owners to the list of business owners that must provide 1099s to service providers (such as a plumber, painter, or an accountant).
For most of our clients, they will only be affected by the Small Business Jobs Act that is not included in the current repeal. We understand this can be very confusing. Even the national media has published articles with inaccurate information about the new 1099 filing requirements. We will be tracking the repeal process as it goes to the Senate, so stay tuned for updates on the 1099 filing requirements for expenses paid in 2011 and going forward.