听起来我们小地主不需要写1099... 各位专家请不吝指教。
http://www.g*****law.com/news/legal_update/form_1099_reporting_two_burdensome_rules_repealed_but_some_traps_remain/
Form 1099 Reporting: Two Burdensome Rules Repealed, But Some Traps Remain
Garvey Schubert Barer Legal Update, May 2011.
You may have heard the expanded Form 1099 reporting requirements (enacted in 2010) were recently repealed, but did you know some of the new rules remain intact? This Tax Alert contains a summary of the requirements which were repealed. In addition, it contains an overview of the longstanding, and not so longstanding, Form 1099 rules that continue to apply, and highlights the new rules which were not repealed.
The Attempted Expansion of Form 1099 Reporting Requirements
Two pieces of legislation in 2010 expanded the Form 1099 reporting requirements. First, under thePatient Protection and Affordable Care Act (PPACA), Form 1099 reporting was expanded to require all businesses to file a Form 1099 for any purchases, including purchases of property and not just services, totaling $600 or more to a single payee within a calendar year (not including tax-exempt payees). The PPACA also repealed the longstanding reporting exclusion of payments made to corporations. The expanded Form 1099 requirements of the PPACA were to go into effect January 1, 2012.
Six months after enactment of the PPACA, the Small Business Jobs Act (SBJA) mandated that all real estate owners who receive rental income report any rental property expense payments of $600 or more on Form 1099. Formerly, only landlords considered to be engaged in rental real estate as their trade or business were subject to this requirement. The SBJA also increased penalties for failure to file required Forms 1099. The provisions of the SBJA went into effect January 1, 2011.
The Repeal
The Comprehensive 1099 Taxpayer Protection and Repayment of Exchange Subsidy Act of 2011repealed most of the expanded Form 1099 reporting requirements under the PPACA and SBJA. One part of the SBJA, however, remains intact - increased penalties for failure to file Forms 1099. The enhanced penalties, which were effective January 1, 2011, will be adjusted for inflation every five years.
Enhanced Penalties
First-Tier Penalty (failures corrected within 30 days): Increased from $15 to $30 per return and the calendar year maximum increased from $75,000 to $250,000. For small businesses,1 the calendar year maximum increased from $25,000 to $75,000.
Second-Tier Penalty (failures corrected on or before August 1 of the applicable calendar year): Increased from $30 to $60 per return and the calendar year maximum increased from $150,000 to $500,000. For small businesses, the calendar year maximum increased from $50,000 to $200,000.
Third-Tier Penalty (failures not corrected or corrected after August 1 of the applicable calendar year): Increased from $50 to $100 per return and the calendar maximum increased from $250,000 to $1,500,000. For small businesses, the calendar year maximum increased from $100,000 to $500,000.
Intentional Disregard Penalty: Increased from $100 to $250 per return.
So, What Does It All Mean?
Form 1099 reporting requirements which were in effect before the PPACA and the SBJA remain unchanged, but businesses must beware of the enhanced penalties. Below are some FAQs which illustrate current Form 1099 reporting requirements.
Does a business purchasing services in excess of $600 from an unincorporated service provider have to report the payment on a Form 1099? Yes. Businesses are still required to issue Forms 1099 for payments of $600 or more to unincorporated service providers.
What if a business purchases goods from an unincorporated provider? Does it have to issue a Form 1099? No. Form 1099 reporting requirements which were in effect before the PPACA and the SBJA do not require a Form 1099 be issued for payments in consideration of property.
An individual has rental income from a summer home, but rental property is not his/her business. Does he or she have to file a Form 1099 for all property expense payments of $600 or more? No. A Form 1099 is required only for payments made in the course of a trade or business.
Does a landlord considered to be engaged in rental real estate as his/her trade or business have to report the above payment on a Form 1099? Yes. Landlords whose rental activities constitute a trade or business are still obligated to report payments to unincorporated service providers of $600 or more.
Does a business purchasing services in excess of $600 from an incorporated service provider have to report that payment on a Form 1099? No. The exception for payments made to corporations was reinstated, so no Form 1099 is required.
What if the service provider is an attorney? Yes, a Form 1099 is required. There are a few exceptions to the general rule that payments to corporations are exempt from any Form 1099 reporting requirement. One exception is any payments made to attorneys in the course of a trade or business are required to be reported on a Form 1099 regardless of whether the attorney is incorporated or unincorporated.
Summary
Repealing the expanded information reporting requirements will free businesses of the responsibility of filing a Form 1099 whenever they pay any vendor more than $600 for goods or services in a single year, reinstating the exemption for most payments to corporations and payments for property. The repeal also rescinds the change made by the SBJA that would have subjected any person receiving rental property payments to the information reporting requirements. However, for businesses that make payments subject to the Form 1099 reporting requirements, the stakes are higher. The enhanced penalties enacted under the SBJA remain in effect.
For more information about Form 1099 reporting, please contact any of the members of the GSB Tax & Benefits Group.
Circular 230 Disclosure: The income tax principles, rules, and outcomes discussed in this alert are intended to be used solely for general informational purposes. The information contained in this alert is not intended to be used, and cannot be used, for the purpose of avoiding federal tax penalties. Further, this alert is not intended to and cannot be relied upon by, or marketed to, others. Please contact us if a formal penalty-protection federal income tax opinion is desired with respect to the matters discussed herein.
1 Small businesses are companies having average annual gross receipts for the most recent three years of no more than $5 million. See Code Section 6721(d)(2).
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