There has been much debate about the provisions of the Health Care Reform that would require businesses to report payments to most vendors starting in 2012. Well the Small Business Jobs Act of 2010, strikes another blow to the likelihood of this provision being repealed.
Since, its enactment earlier this year, we have not believed that this provision would be repealed. Certainly, we expect clarification on what Congress meant by “property” (hopefully by the middle part of next year), but not a repeal of this provision. Well, the Small Business Jobs Act of 2010 signed into law on September 27th, expands this provisions reach. For payments made after December 31, 2010, persons receiving rental income from rental property will have to file information returns to the IRS and to service providers who are paid $600 or more during the year for rental property expenses. We would expect some clarification, but we think that the table is set to expand the amount of reporting requirements. Expect rental activities to be included in the clarification provisions to Health Care Reform some time next year.