Obama Signs 1099 Repeal
Political Insider
NAA/NMHC secured one of their top legislative priorities on April 14 when President Obama signed into law legislation (HR 4) to repeal onerous 1099 reporting requirements enacted as part of last year’s health care reform law (PL 111-148).
HR 4 passed the House on March 3 and the Senate on April 5.
Under current law, businesses must send Form 1099s to all individuals who provide the firm with more than $600 worth of services in one calendar year. If it had been left unchanged, the health care reform law would have greatly expanded the requirement as of 2012, creating a significant compliance burden for apartment firms and other businesses. First, payments made to corporations would no longer be automatically exempt from the reporting requirement. Second, the requirement would apply to the purchase of goods as well as services.
HR 4 also repealed separate 1099 changes enacted last year under a small business law (PL 111-240). Those changes require passive real estate owners to comply with all present-law 1099 requirements. That provision went into effect in 2011. Visit www.naahq.org/governmentaffairs for information about the 1099 requirements, including an NAA/NMHC analysis.
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