TAX REPORTING – The Small Business Jobs Act

Under the Small Business Jobs Act, landlords are required to report to the IRS payments of $600 or more to a vendor or service provider in the course of the year. This is done by issuing a 1099-MISC form.  This requirement started in 2011 and includes payments to service providers such as plumbers, carpenters, yard service providers and repair people. The Form is provided to the IRS and to the service provider. This requirement applies to both residential and commercial property.

Landlords need to obtain the name, address and taxpayer identification number of the service provider, using Form W-9 or a similar form.

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Nothing found herein should be construed as an attempt to offer or render a legal opinion or otherwise engage in the practice of law. You should obtain the advice of an attorney well versed in these matters