THIS HAS BEEN REPEALED

The below information is about a law that was passed, to take effect on January 1, 2012.

HOWEVER, the law HAS BEEN repealed. The repeal has passed the House and Senate (on 05 Apr 2011, 87-12 vote), and the President signed the bill on 14 Apr 2011.

Details of the law are here, for the curious, regarding what could have happened:

---

1099s

In the United States, there is a reporting requirement that requires businesses to fill out 1099 forms for certain transactions of $600 or more. These get sent to the IRS. These are typically filled out when individuals receive $600 or more of non-wage income from a business over the course of a year. The law can be found at here.

New Law

In March, 2010, HR3590 ("The Patient Protection and Affordable Care Act") was passed. You can find it here. This 900 page health care bill has on page 737, section 9006 titled "EXPANSION OF INFORMATION REPORTING REQUIREMENTS." This section changes the reporting requirements.

Specifically, it changes the law so that [1] payments to corporations are included (except ones exempt per section 501(a), such as charities), and [2] "amounts in consideration for property" are included (so purchases over $600 are reported). The law takes effect January 1, 2012.

SEC. 9006. EXPANSION OF INFORMATION REPORTING REQUIREMENTS.
     (a) IN GENERAL.óSection 6041 of the Internal Revenue Code of 1986 is amended by adding at the end the
following new subsections:
     ëë(h) APPLICATION TO CORPORATIONS.óNotwithstanding any regulation prescribed by the Secretary before
the date of the enactment of this subsection, for purposes of this section the term ëpersoní includes any
corporation that is not an organization exempt from tax under section 501(a).
     ëë(i) REGULATIONS.óThe Secretary may prescribe such regulations and other guidance as may be
appropriate or necessary to carry out the purposes of this section, including rules to prevent duplicative
reporting of transactions.íí.
     (b) PAYMENTS FOR PROPERTY AND OTHER GROSS PROCEEDS.ó Subsection (a) of section 6041 of the Internal 
Revenue Code of 1986 is amendedó
          (1) by inserting ëëamounts in consideration for property,íí after ëëwages,íí,
          (2) by inserting ëëgross proceeds,íí after ëëemoluments, or otheríí, and
          (3) by inserting ëëgross proceeds,íí after ëësetting forth the amount of suchíí.
     (c) EFFECTIVE DATE.óThe amendments made by this section shall apply to payments made after 
December 31, 2011.

Key Facts

• This reporting is only required to be done by businesses ("All persons engaged in a trade or business"), when they pay money for something.
• This reporting will be done if you sell bullion worth $600 or more.
• The government will not know that you sold bullion (but would have the information necessary to compile a list of people who either had bullion, or a connection with the bullion industry).
• This reporting is not required when you buy bullion.
• This reporting is not required for transactions between two individuals, only when the buyer is a business.
• You are always required to report income on your tax return whether or not you receive a 1099 form.
• H.R. 5141 is attempting to repeal this (see also govtrack.us). If passed, it would cause the new law not to take effect, so reporting would continue as it had in the past.

(C) Copyright 2010-2019 About.Ag [E-mail]