463 / Did Congress repeal the new and expanded 1099 requirements that were to be effective in 2012?

Yes.

A business making payments to a service provider other than a corporation aggregating $600 or more for services in the course of a trade or business in a year is required to send an information return (Form 1099) to the IRS (and to the service provider-payee) setting forth the amount, as well as name and address of the recipient of the payment (generally on Form 1099).

The new law changed this requirement so that businesses had to issue 1099 forms to all persons and businesses, including corporations, for which aggregate annual payments are $600 or more, among other things.

Health care reform expanded the 1099 requirements in two ways:

(1)     1099s were required to be issued to corporations, and

(2)     1099s were required to be issued for purchases of goods and products (rather than only services) that exceeded $600 per year.

On April 5, 2011 the Senate approved H.R. 4, the Comprehensive 1099 Taxpayer Protection and Repayment of Exchange Subsidy Overpayments Act of 2011, which retroactively repeals expanded Form 1099 information reporting rules. President Obama signed the bill into law on April 14, 2011. Therefore, taxpayers were not required to take any steps in 2012 and thereafter to comply with the new 1099 requirement.