On April 14, 2011, the Comprehensive 1099 Taxpayer Protection and Repayment of Exchange Subsidy Overpayments Act was signed into law.  This Act repeals both the expanded Form 1099 information reporting requirements mandated by the 2010 health care legislation and also the Form 1099 reporting requirements imposed on taxpayers who receive rental income enacted as part of the 2010 Small Business Jobs Act.  Basically businesses and taxpayers who receive rental income from real estate revert back to the Form 1099 reporting requirements prior to the passage of the 2010 Patient Protection and Affordable Care Act and 2010 Small Business Jobs Act, as if either Act had never occurred.

The 2011 legislation did not however repeal the increase in the information reporting penalties that were also mandated in the Small Business Jobs Act of 2010. The minimum and tiered penalties under IRC 6721 remain the same as enacted by the 2010 Act.