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LANDLORDS, BE AWARE.


Senator Olympia Snowe (R-ME) introduced an amendment in the Senate Finance Committee repealing the provision that requires persons receiving rental income from real property to file Form 1099 for payments of rental property expenses of $600 or more during the year (included in the Small Business Jobs Act). Her amendment failed to pass in the Committee hearing. The mandate became effective on January 1, 2011. Senator Snowe mentioned that many taxpayers may be in violation of the law already. She also points out that after the passage of the Senate amendment to repeal the Form 1099 reporting requirement for purchases of goods and services over $600, rental property owners would be the only taxpayers subject to the expanded information reporting requirement. The Small Business Jobs Act did include an exception for property owners who receive only "minimal amounts of rental income" or "for whom the requirement would cause hardship," yet because no regulations have been promulgated these standards are still unknown.



OFFERS IN COMPROMISE NEWS.


In Announcement 2011-6, IRS extends until December 31, 2012 the two-year test of the mediation and arbitration procedures for the Offer in Compromise and Trust Fund Recovery Penalty cases under the jurisdiction of the Office of Appeals. During the extended test period, Appeals will continue to offer OIC and TFRP mediation and arbitration for taxpayers whose appeals are considered at an Appeals office located in one of the following cities: Atlanta, Georgia; Chicago, Illinois; Cincinnati, Ohio; Houston, Texas; Indianapolis, Indiana; Louisville, Kentucky; Phoenix, Arizona; and San Francisco, California.



Senate Passes 1099 Repeal Amendment.


(Note: This Senate bill does NOT provide relief for landlords!!)

The Senate passed an amendment, 81-17, to repeal Section 9006 of the Patient Protection and Affordable Care Act, which requires businesses to issue Forms 1099 for purchases of $600 or more for goods and services, beginning in 2012. The amendment, introduced by Senator Debbie Stabenow (D-MI), treats the provision as if it had never been enacted. Previous bills were introduced in the 111th Congress with partisan arguments over how to pay for the repeal leading to the failed votes. To offset the expected $19 billion increased revenue from the provision, the amendment allows the Office of Management and Budget to reallocate unspent federal funds. The amendment will now go to the House, where a similar bipartisan bill to repeal the provision has been introduced by Congressman Daniel Lungen (R-CA) with 245 co-sponsors. In an unusual move, Congress took swift action on this issue early in the legislative year. Hopefully we will see this burdensome reporting requirement lifted.



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