For payments made after Dec. 31, 2010, the new recently enacted Small Business Jobs Act of 2010 requires persons receiving rental income from real property to file information returns with IRS and service providers reporting payments of $600 or more during the year for rental property expenses. Exceptions are provided for individuals renting their principal residences (including active members of the military), taxpayers whose rental income doesn’t exceed an IRS-determined minimal amount (to be determined), and those for whom the reporting requirement would create a hardship (under IRS regs).
To obtain the necessary information from payees request that they prepare Form W-9.
