Ezel / IRS Rulings / 201101019

CCA 201101019: Chief Counsel discusses rental-property payment reporting

Number
201101019
Outcome
Advice
Document type
Chief Counsel Advice
IRS subject
Information at Source
Topics
Procedure, penalties, and administration
Code sections
§ 6041
Ruling dated
November 4, 2010
Publicly released
January 7, 2011
Source
View Official PDF

Apply this to your situation

This page covers legal advice the IRS Office of Chief Counsel wrote for IRS staff, issued in 2011, which can't be cited as precedent. Ask about your situation and see what the current Code and IRS guidance say, with citations.

Currency note: this determination was released in 2011
Statutory amendments, regulation changes, court decisions, or later IRS guidance may have changed the analysis since then. Treat this page as historical context, not current tax advice. Verify current law before relying on any specific rule, threshold, or position mentioned here.
Not precedent. Under 26 U.S.C. § 6110(k)(3), this written determination may not be used or cited as precedent. It is advice from the IRS Office of Chief Counsel to IRS personnel on the facts they presented, and identifying details were redacted by the IRS before release. The official IRS release (linked on this page as a PDF) is the authoritative source.
About this page: The plain-English summary and ruling snapshot below were written by Ezel based on the official IRS release. The full text is the IRS's own document.
View official IRS release (PDF)

Plain-English summary

Chief Counsel Advice discusses the information-reporting provision for rental-property expense payments in the Small Business Jobs Act of 2010. The memorandum points to section 2101 of H.R. 5297, which added subsection (h) to IRC § 6041. That provision treats a person receiving rental income from real estate as engaged in a trade or business of renting property, subject to exceptions. The document states that the effective date applies to payments made after December 31, 2010.

Ruling snapshot

  • Question: What change did the Small Business Jobs Act of 2010 make to information reporting for rental-property expense payments?
  • Outcome: Advice given
  • Key authorities: IRC § 6041(h); H.R. 5297, § 2101 (Small Business Jobs Act of 2010)

Full text (IRS public release)

ID: CCA_2010110410241036 Number: 201101019
Release Date: 1/7/2011
Office: ----------------------------
UILC: 6041.00-00

From: --------------------
Sent: Thursday, November 04, 2010 10:24:11 AM
To: -----------------
Cc:
Subject: Section 6041 1099 requirement - -----------------------

----------
I attempted to contact you by phone and left a few voicemails. Please take a look at H.R. 5297 (Small Business Jobs Act of 2010), Sect. 2101 (Information Reporting for Rental Property Expense Payments). This legislation adds subsection (h) to sect. 6041 and is entitled "Treatment of Rental Property Expense Payments." This added subsection provides that a person receiving rental income from real estate shall be engaged in a trade or business of renting property, subject to certain exceptions. Also attached is the Joint Committee on Taxation's Technical Explanation (relevant pages only) for your reference. Note that the effective date applies to payments made after December 31, 2010.

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