The Internal Revenue Service is asking for public comments on how to most effectively carry out a law that will require businesses to report a wider range of payments to contractors, vendors and others, usually on Form 1099, starting in 2012.
The IRS said the comments would help it provide guidance to implement the provision in such a way that it would minimize the burden and avoid duplicate reporting.
The Treasury Department and the IRS have issued a proposed regulation under which many business purchases made with credit or debit cards would be exempt from the new reporting requirement because they will already be reported by banks and other payment processors. However, the IRS is seeking comments on additional circumstances in which duplicate reporting might otherwise occur and on rules that would prevent such duplicate reporting.
The change, enacted in March but not effective until 2012, will expand the existing reporting requirements to include a businesss payments related to goods and other property, and payments to most corporations (see IRS Sees Need for More Tax Information Reporting).
Comments can be e-mailed to Comments@irscounsel.treas.gov. Include Notice 2010-51 in the subject line.
Register or login for access to this item and much more
All Accounting Today content is archived after seven days.
Community members receive:
- All recent and archived articles
- Conference offers and updates
- A full menu of enewsletter options
- Web seminars, white papers, ebooks
Already have an account? Log In
Don't have an account? Register for Free Unlimited Access