April 6, 2011 12:00 am

Onerous Reporting Rules Repealed

Last year’s Patient Protection and Affordable Care Act (“Obamacare”) expanded the 1099 reporting rule for businesses. Starting in 2012, all businesses, including sole proprietors, were to have begun reporting the value of goods and services obtained from any other business if the value was $600 or more. Congress has now voted to repeal this rule, and the president has praised this action, indicating that he will sign the measure.

Last year’s Small Business Jobs Act had expanded 1099 reporting to landlords to the same extent that it applied to businesses. Thus, landlords were supposed to have reported services from independent contractors of $600 or more, such as those provided by painters, plumbers, and accountants. This provision has also been repealed as it if were never enacted.

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Tax Glossary

Accountable reimbursement plan

An employer reimbursement or allowance arrangement that requires you to adequately substantiate business expenses to your employer, and to return any excess reimbursement.

More terms