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Repeal of 1099 information reporting requirements

April 24, 2011 by Admin

Congress repealed expanded 1099 information reporting requirements! On April 5th, the Senate approved the “Comprehensive 1099 Taxpayer Protection…Act of 2011”. This act retroactively repeals the expanded Form 1099 information reporting rules. As a result the original information rules remain which generally required payments totalling at least $600 in a single calendar year to a single recipient to be reported to the IRS. Reporting on Form 1099 is required only when the payor is considered to be engaged in a trade or business and has made payments in connection with that trade or business.

Filed Under: BUSINESS FORUM, TAX TIPS FOR INDIVIDUALS

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