Form 1099 new requirement

[Questionguy101]

So what's up with the new 1099 requirement? Have it been finalized yet?

So is a contractor required to issue a 1099-misc to Home Depot if he has bought more than $600 of building materials from them in 2011?

[Kram BergGold]

No

1099's to Home Depot are not required for 2011.

[Questionguy101]

1099's to Home Depot are not required for 2011.

What are the specifics of the new requirements? Suppose the contractor bought more than $600 from a local mom and pop shop, is issuing an 1099-misc required?

I'd appreciate a link to the new rules so I can study myself. Thanks.

[Gary2]

See http://www.irs.gov/formspubs/article...239708,00.html for the rental rule changes, and follow the link on that page for the 1099-MISC instructions.

[joanmcq]

Most of the 'new' 1099 requirements were repealed quite a while ago. Part of one of the bills with a totally euphemistic name that doesn't describe at all what it actually does.

[Questionguy101]

See http://www.irs.gov/formspubs/article...239708,00.html for the rental rule changes, and follow the link on that page for the 1099-MISC instructions.

So basically there is nothing change from before. Have I read it right?

[Gary2]

So basically there is nothing change from before. Have I read it right?

The 1099-K is still there.

Schedules C, E, and F have check boxes relating to 1099 requirements. However, in the case of the Schedule E, it may be ignored. I believe Sch. C also has a new line for income received that was reported on a 1099-K.

So, unless you're PayPal or similar, the changes are minimal and relate to completing the form. They don't change when most people have to issue 1099s in 2011.

I'm not sure if any of the changes that were originally scheduled for 2012 are still there.

[Bees Knees]

So what's up with the new 1099 requirement? Have it been finalized yet?

So is a contractor required to issue a 1099-misc to Home Depot if he has bought more than $600 of building materials from them in 2011?

The 1099 rule changes were all repealed. You can read about it from TheTaxBook updates dated 4/19/2011:

http://www.thetaxbook.com/view_update.asp?1=184

[Gretel]

I heard from Bob Jennings that the instructions for form 1099-Misc and Schedule E did not keep up with the repealed tax law and will create great confusion if not changed. I did not check it out myself.

[Gary2]

I heard from Bob Jennings that the instructions for form 1099-Misc and Schedule E did not keep up with the repealed tax law and will create great confusion if not changed. I did not check it out myself.

Not only that, but I just saw an IRS note yesterday that said the 1099-K is considered optional for 2011. Therefore the preference is that the line on the Sch. C for income reported on the 1099-K be left blank (tax year 2011 only) and all gross receipts be reported as in the past. Don't be surprised if your software does this for you or leaves it half-implemented this coming season (i. e., allowing you to enter 1099-K receipts as such, but not printing them separately on the form).

The remark about the Sch. E and instructions not changing is correct, at least as of a couple of days ago. The link I posted previously (and which is included in the instructions) shows the terse IRS corrections. Last year they posted a late Pub. 17 update, which I believe was after the printed editions had gone to press. I'll be disappointed if they don't update the online Sch. E before the start of the upcoming tax season.