In letters to members of the House of Representatives and the Senate, the AICPA on Nov. 16 expressed its concerns about the compliance burdens being placed on businesses (including rental property owners) by recently expanded Form 1099 information-reporting requirements. The letters, signed by Patricia Thompson, CPA, chair of the AICPA’s Tax Executive Committee, urge Congress to repeal the new requirements.
Two recent pieces of legislation expanded information-reporting requirements for businesses and for individuals who receive income from rental property. The Patient Protection and Affordable Care Act, PL 111-148, overturned the regulation that exempted payments to corporations from the information-reporting rules. The act also expanded the information-reporting requirements to include business payments for property (instead of just services, as required under current law). Under the act, starting with payments made in 2012, businesses would generally have to provide a Form 1099 to vendors and the IRS—and collect the required Form W-9 information—for purchases of $600 or more in property or services from another entity (including corporations).