Information provided by:
Robert Rich, EA
Robert Rich Tax & Financial Services
P.O. Box 1544
600 Blair Park, Suite 155
Williston, VT 05495
802.862.1381
 
                 With the tax year beginning January 1, 2011, owners of rental property making aggregate annual payments of $600 or more to a service provider are required to file an annual informational return, Form 1099 with both the IRS and the service provider. This reporting requirement is not new for business owners but the 2010 Jobs Act has extended it to include anyone who receives rental income. 
 
  You are required to file these reports for virtually every type of service provider you may use, including carpenters, contractors, landscaping services, trash collectors, snow removal, accountants, and attorneys. There are two important exceptions to the reporting rules detailed above: 1) if the service provider is incorporated, no report is required until tax years beginning January 1, 2012, except 2) all payments to attorneys must be reported regardless of the amount, even those less than $600, and whether or not the attorney is incorporated.
 
 In order to comply, you will need to obtain each service provider's name used for tax reporting, address, and tax ID number (EIN, Employer Identification Number, or SSN, Social Security Number). The gross amount you pay the provider during the year must be reported to the provider on IRS Form 1099-Misc by no later than January 31, 2012. You are also required to provide duplicate copies to the IRS. We recommend you obtain the necessary information before you pay any provider for whom you will be required to file a report. IRS Form W-9 can be used to obtain this information from your service providers. You can obtain copies of W-9 from the IRS.