The Latest on Churches Filing Form 1099-Misc.
By Raul Rivera
On March 23, 2010 President Obama signed the Patient Protection and Affordable Care Act. The now infamous healthcare act amended section 6041 to increase the 1099-misc reporting requirement on all businesses, churches and ministries. For example, if your church goes to buy $600.00 of office supplies from Office Depot, it would have to issue Office Depot a 1099 form. In the same way, if it purchases $600.00 or more from any airline, it would have to issue each airline a 1099 form. This provision of the law has been very contentious and has placed a burden on small businesses, churches and ministries.
Good news! The law repealed
On April 5th, 2011, the president signed into law bill H.R. 4. This new law repealed the burdensome 1099 reporting requirements. The bill was originated in the House of Representatives and was sent to the Senate which passed it 87-12.
So, what now? A word of caution
I want to caution all church treasurers and finance leaders. The repeal of the 1099 provision does not mean that 1099 filing requirements are now eliminated. The repeal simply puts the law back to its former state. Churches will still have to continue to issue 1099-Misc forms to all individuals or unincorporated businesses that provide services to the church of $600.00 or more.