Get ready for more burdensome paperwork.
A small-business bill poised to become law includes new tax reporting requirements for rental property owners and a second provision calling for steep increases in fines for any person or business who fails to furnish correct information to the IRS, such as 1099 forms for services and purchases.
The two provisions are tucked inside the Small Business Lending Fund Act, which passed the Senate Thursday. A report issued last week by the Joint Committee on Taxation calculates that the two provisions combined would raise about $3 billion of the overall $30 billion cost of the legislation.
According to the bill’s proposed new rules on rental property, owners who pay $600 or more for a service such as plumbing, landscaping or painting, would be required to issue 1099 forms to the IRS and whoever provided the work.
Think: maintenance folks, landscaping people, plumbers, etc.
Hat tip: Real Estate Bloggers