On Thursday, April 14th, President Obama signed into law the Comprehensive 1099 Taxpayer Protection and Repayment of Exchange Subsidy Overpayments Act of 2011, which repeals the expanded Form 1099 information reporting requirements mandated by last year’s health care legislation.
This repeals the requirement for any business to issue Form 1099-MISC for payments of goods or property in excess of $600 and repeals the requirement of any business to issue Form 1099-MISC for payments made to corporations.
Note however, that The Small Business Jobs Act increased the fines for issuing 1099-MISC forms late. Most of the penalties were doubled. The penalty increase has not been repealed, and the higher penalty amounts are already effective for 2011.