March 7, 2011 — The U.S. House of Representatives recently repealed the 1099 reporting mandate for small businesses through the approval of the Small Business Paperwork Mandate Elimination Act of 2011.
The reporting mandate would have required small businesses to file a 1099 form with the Internal Revenue Service for every vendor paid more than $600 a year. The Automotive Service Association (ASA) has argued that the mandate would create a heavy burden on businesses through unnecessary paperwork.
The ASA said the bill still faces hurdles in the U.S. Senate. Both chambers have voted to repeal the legislation in the past, but they haven’t found common ground on how to cover the cost of lost revenue, according to the ASA.
“We’ll have to see where the differences lie between the two bills,” said Rep. Eric Cantor, R-Va.
For more information on the 1099 mandate, go to the ASA’s legislative website, takingthehill.org.
