On April 14, President Barack Obama signed legislation repealing the expanded 1099 reporting requirements that were enacted last year. The bill was overwhelmingly approved by the House and Senate. The AICPA had advocated strongly for repeal of both provisions and as one of the only organizations advocating against the rental property requirement was a driving force in its repeal. When the Senate passed the bill on April 5 and sent it to President Obama for his signature, AICPA President and CEO Barry Melancon described the repeal as “a victory for taxpayers.”
The recordkeeping provision required businesses to file Form 1099 for all transactions valued at $600 and more and drew a firestorm of criticism from small businesses for being an excessive paperwork burden. The new law offsets the cost of repeal by increasing the amount of overpayment subject to repayment of premium assistance tax credits for health insurance coverage purchases through the exchanges established under the health care law.
Source: CCH Tax Research Network
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