Expanded 1099 Reporting Requirement Repealed
The requirement for 1099 reporting to corporations for payments of $600 or more has been repealed. On April 14, 2011 President Obama signed the Comprehensive 1099 Taxpayer Protection and Repayment of Exchange Subsidy Overpayments Act of 2011 repealing the expanded 1099 reporting requirement.
Before the repeal, 1099s were generally required to be issued for payments of $600 or more per year to a single recipient if those payments were made in connection with a trade or business. Payments made to corporations were exempt from this requirement in the past, but legislation passed in 2010 added corporations to the reporting requirement starting with payments made after December 31, 2011. The repeal passed on April 14, 2011 again exempts payments made to corporations from 1099 reporting.
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