IRS Taking Public Comments on New 1099 Regulations

Here's an update to my post earlier today about new 1099 requirements for goods and not just services, like those provided by independent contractors. The IRS is taking public comments "on how to most effectively carry out" that law change that takes effect in 2012. 

The IRS said in a statement that these comments will help the agency "issue guidance that implements this provision in a manner that minimizes burden and avoids duplicate reporting."

Under a proposed regulation, many business purchases made with credit or debit cards would be exempt from the new reporting requirement because they are already reported by banks and other payment processors. The IRS wants your thoughts on additional circumstances in which duplicate reporting might otherwise occur and on rules that would prevent duplicate reporting.

There are three ways to submit comments.

• E-mail to: Notice.Comments@irscounsel.treas.gov. Include “Notice 2010-51" in the subject line.

• Mail to: Internal Revenue Service, CC:PA:LPD:PR ( Notice 2010-51), Room 5203, P.O. Box 7604, Ben Franklin Station, Washington, DC 20044

• Hand deliver to: CC:PA:LPD:PR ( Notice 2010-51), Courier’s Desk, Internal Revenue Service, 1111 Constitution Avenue NW, Washington, DC, between 8 a.m. and 4 p.m., Monday through Friday.