Concerned about the tax compliance burden imposed on taxpayers, particularly small businesses, Congress passed legislation repealing certain information reporting requirements enacted last year. The Comprehensive 1099 Taxpayer Protection and Repayment of Exchange Subsidy Overpayments Act of 2011, repeals recently expanded information reporting rules that would have required the filing of Form 1099 for:
* Payments of $600 or more by businesses; and
* Expense payments of $600 or more with respect to rental property.
To pay for the cost of repeal, estimated at approximately $25 billion over 10 years, the legislation increases the amount of overpayment of health care credit that is subject to recapture.
The House passed the measure on March 3, 2011, by a vote of 314 to 112. The Senate followed with passage on April 5, 2011, by a vote of 87 to12. The legislation now goes to President Obama for his signature.