Friday, April 29, 2011

President Obama Signs Repeal of 1099 Corporate Information Reporting Requirements into Law

President Obama has signed the “Comprehensive 1099 Taxpayer Protection and Repayment of Exchange Subsidy Overpayment Act of 2011” (H.R. 4) into law. The Act repeals new corporate Form 1099 information reporting requirements that were scheduled to go into effect in 2012. Businesses had raised concerns about the expense and effort required to comply with the new information reporting requirements. At the signing, President Obama said, “I was pleased to take another step to relieve unnecessary burdens on small businesses by signing H.R. 4 into law.”

Under current law, payments to corporations, except those made for medical or health care services, are not required to be reported on an information return.

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