Senate OKs repeal of 1099 reporting requirement
April 6, 2011 — The U.S. Senate recently passed legislation repealing a mandate in the new health care law that would have required small businesses to file a 1099 form with the IRS for every vendor paid more than $600 a year.
The House passed the repeal earlier this month, so the legislation now goes to President Obama for approval.
“Today, the wrench has finally been pulled from the gears of progress,” said U.S. Sen. Mike Johanns, R-Neb., in a prepared statement. Johanns introduced the 1099 repeal seven times during the past eight months. “I appreciate that my colleagues have seen the wisdom of avoiding further delays and getting this costly, looming paperwork burden off the backs of our job creators. We now need only a simple signature from the president and this bill will become law, saving jobs and much needed capital for our small businesses.”
The Automotive Service Association (ASA), along with other business organizations, has opposed the mandate. The ASA has said it would waste the time, energy and resources of small businesses.
For more information on the 1099 issue, go to ASA’s legislative website, takingthehill.org.