Movement on Repeal of both 1099s

The revenue offset would  increase the amount of the new health care credit that is subject to recapture and is opposed by the White House. AICPA and others have advocated repeal  to reduce a significant burden imposed by both provisions. AICPA CEO Barry Melancon praised the move to repeal and said, “We urge House and Senate lawmakers to find a quick resolution to their different repeal provisions so that taxpayers will be relieved of these onerous reporting requirements under the PPACA and SBJA.” “The extraordinary burden placed on individuals in this approach far outweighs any potential benefit,” Patricia Thompson, Chair of the Tax Executive Committee, commented in written testimony to the House Ways and Means Committee.  There is also a burden on practitioners to determine how the rules on rental property owners will apply so they can advise their clients accordingly.   Thompson said more specifics are needed, particularly to determine when the law relates to the taxpayer’s primary residence. For example, will someone who pays a plumber in January be required to report the payment even though the property was not rented until March?

In a letter  to Treasury on the rental property reporting rule, Thompson recommended that the IRS and Treasury Department establish a grace period of six months to a year before taxpayers become subject to any penalties to allow time for them to become aware of the requirements, pointing out that many taxpayers are not likely to be aware of the law until they consult with a practitioner, which may be after the Jan. 31 deadline to provide a 1099 to the provider.