UPDATE: New 1099 Reporting Requirements Repealed!

The IRS has issued a proposed regulation to help deal with the flood of paperwork associated with the new 1099 reporting requirements that are set to take effect in 2012.

Under the proposed regulation, any business purchases made with a credit or debit card will be exempt from the new reporting requirement because those purchases are already reported by banks and other payment processors.

Do you have any brilliant ideas for how to reduce the avalanche of paperwork even further?? The IRS would like to hear your thoughts!  They have invited public comments on how to most effectively carry out the new law.  To give the IRS your opinion, send an email to Notice.Comments@irscounsel.treas.gov and be sure to include “Notice 2010-51″ in the subject line.