AICPA Wins Repeal of 1099 Reporting Requirements

May 25, 2011

Provisions in two laws passed by Congress in 2010 that would have imposed burdensome Form 1099 reporting requirements on taxpayers were repealed just months later as a result of a public outcry, including the opposition voiced by the AICPA, CPA state societies and CPAs nationwide.

The AICPA was the leading advocate for the repeal of the rental property provision of the small business jobs bill. AICPA President and CEO Barry Melancon called the repeal “a victory for taxpayers.”

The provisions would have expanded Form 1099 information reporting requirements for businesses and rental property owners under the Patient Protection and Affordable Care Act of 2010 and the Small Business Jobs Act of 2010. The provisions were repealed when President Obama signed H.R. 4, the Comprehensive 1099 Taxpayer Protection and Repayment of Exchange Subsidy Overpayments Act of 2011, into law on April 14.

The AICPA began its push for repeal of the health care 1099 reporting provision in July with letters to U.S. House of Representatives and Senate lawmakers. The AICPA reiterated its support for repeal of the health care provision in letters to Congress in November and added a call for repeal of the provision in the small business jobs bill.

Since no repeal was enacted during the lame duck session, the AICPA stepped up its campaign and began making visits to congressional offices in January 2011. AICPA letters to the House Ways and Means and Senate Finance Committees advocating repeal were sent on February 14. And, on March 3, AICPA Tax Executive Committee Chair Patricia Thompson testified before the House Ways and Means Select Revenues Subcommittee in support of repealing the expanded Form 1099 information reporting provisions. Personal visits continued into April.