President Obama recently announced a series of tax breaks designed to specifically help small businesses, it is known as the Small Business Jobs Act. Along with the recently advertised tax breaks for capital improvements another piece to the legislation has been tacked onto to the H.R. 5297 bill. This new law will require that all landlords will be required to track information about contractors that have been hired to perform services to rental property that exceeds $600 a year. President Obama signed the Small Business Jobs act on September 27th, 2010.

The 1099 Form

The IRS 1099 form is a special tax form that is issued to contractors that perform services for an amount that cumulatively exceeds $600 in the tax year. This form is provided by the person making the payment to the person doing the work. A copy of this tax form is required to be sent to the IRS at the end of the tax year by the payer and the payee to ensure that income and deductions are being adequately recorded by all parties for tax purposes. The completed form is then sent to the IRS at the end of the tax year. Congress also previously increased the requirements to issue 1099s as part of the health care reform package.

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