Since we all are handling a lot more rentals than we probably ever have in our real estate careers, here is yet another way for us to keep our clients informed. (I have decided it is better to be in good humor about all the additional costs to the business in these difficult times to earn a living practicing real estate)
Effective 2011 it will be required for all Landlords who receive more than $600 in rent for their property to provide 1099's to all their service providers that they paid more than $600 for the year. This covers both residential and commercial landlords, so everyone needs to be prepared to get Tax ID numbers from all service providers that they will be using and paying in 2011 and beyond. It appears they will be penalizing a fine at a cost of $50 per 1099 not filed!!! Then again in 2012 it will be expanded to also cover providers of Goods.
You and your clients will need to reference the IRS Tax Site to get specific information about these requirements. There is also good information on the NAR website.
I am notifying all my landlord clients of this via this blog and a separate email. Just one more great benefit of the Health Care Bill (Not sure what this has to do with health care, but whatever)