President OKs repeal of 1099 reporting law
Following approval from the U.S. Congress earlier this month, President Obama signed into law legislation repealing a mandate requiring small businesses to file 1099 forms with all vendors paid more than $600 for goods or services.
The law, which takes effect at the start of 2012, is a victory for many small business organizations, including numerous automotive groups, which saw the 1099 mandate as unnecessary punishment of businesses already compliant with tax laws.
“Small businesses remain the most important economic engine driving America’s expanded recovery,” said SEMA President and CEO Chris Kersting in a news release_notes about the legislation. “Eliminating the 1099 reporting burden will allow our companies to focus on producing tangible goods and services rather than wasteful paperwork.”
President Obama applauded the teamwork of Democrats and Republicans on the issue, according to the news release.
“I was pleased to take another step to relieve unnecessary burdens on small businesses by signing H.R. 4 into law,” he said.