IRS Seeks to Avoid Duplicative Reporting Under Expanded Information Reporting Rules

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IRS issues Notice 2010-51, seeking comments on how to most effectively carry out a law change that, starting in 2012, will require businesses to report a wider range of payments to contractors, vendors, and others, usually on Form 1099. In seeking comments, IRS says in a news release (IR-2010-79) that it is looking to “issue guidance that … minimizes burden and avoids duplicative reporting.” The notice says the new reporting requirements, enacted as part of this year's Patient Protection and Affordable Care Act, generally require information returns from every person who makes payments of $600 or more in any taxable year to a single payee in the course of the payor's trade or business.