Senate passes 1099 repeal bill

The Senate passed H.R. 4, the Comprehensive 1099 Taxpayer Protection and Repayment of Exchange Subsidy Overpayments Act. The legislation now goes to President Obama for his signature. A statement from the White House press secretary indicates that the administration is in favor of improving the health care law and that Congress has acted to “correct a flaw that placed an unnecessary bookkeeping burden on small businesses”. The statement indicates “Small businesses are the engine of our economy and eliminating the 1099 reporting requirement is the right thing to do.”
Had the legislation not been passed, starting Jan. 1, 2012, small business owners would have been required to send an information return to the IRS (and to the vendor or service provider) for purchases of any goods or services that exceed $600 in a calendar year. Companies would have been required to issue 1099 forms to businesses that performed a variety of services.