In 2010, Congress enacted two separate pieces of legislation concerning Form 1099 informational reporting requirements.

The Small Business Jobs Act (P.L. 111-240) enacted in September imposed new reporting requirements for passive real estate owners that essentially puts them on a level playing field with active owners and helps the government capture more taxes on unreported income.  

The health care reform bill enacted in July (P.L. 111-148) greatly expanded the 1099 reporting requirements for all businesses, including apartment owners.

This guidance document reviews these new requirements and offers NAA/NMHC's analysis that the new requirements for passive investors are a reasonable change to reduce the incidence of underreported income, but the expanded requirements included in the health care bill for all businesses are onerous and should be repealed.