AICPA Asks IRS to Fix Instructions on Real Estate Reporting 

    Published February 08, 2013

    In 2011, in response to AICPA advocacy, Congress changed the law so that scores of taxpayers who rent their property would not be required to report $600 of payments for items such as a check to a gardener or servicing of an air conditioner. However, some taxpayers may be confused by language under the instructions for Schedule E, line A, that reads: "TIP: Generally, you must file Form 1099-MISC if you paid at least $600 in rents, services, prizes, medical and healthcare payments, and other income payments." In a letter to the IRS, the AICPA notes that the "must" is misleading and urges the agency to issue clear guidance as to when a 1099 is truly necessary.



    A A A


     
    Copyright © 2006-2014 American Institute of CPAs.