Proper request to the IRS:
AICPA, in a letter dated January 17, 2013, called on Acting IRS Commissioner Steven Miller and Chief Counsel William Wilkins to issue clear guidance as to when a taxpayer with rental real estate activity must file Form 1099-Misc. They further request that Questions A and B be removed from Schedule E or at least be disregarded for tax years 2011 and 2012.
Here’s the down side.
The lack of clarity about the requirement makes even answering the questions on the form difficult. Such a request for information may constitute a disclosure necessary for a complete return or to avoid penalties.