President Signs 1099 Repeal into Law By By Michael Cohn,
Accounting Today | Washington, D.C. (April 14, 2011)
President Obama signed legislation Thursday repealing the
expanded 1099 reporting requirements in the health care
reform law and Small Business Jobs Act.
Congress succeeded in repealing the 1099 requirements earlier
this month after numerous votes on competing versions of
the legislation (see
Congress Votes to Repeal 1099 Requirements). The widely
unpopular rules would have required businesses to report
any purchases of goods or services of more than $600 a year
from another vendor to the IRS on a Form 1099-MISC.
“This is a big win for small businesses,” wrote
SBA Administrator Karen Mills in a blog post. “The
SBA and President Obama supported repealing this provision,
which would have required businesses to send 1099 forms
for all purchases of goods and services over $600 annually.
With this bipartisan effort, we have removed a requirement
that would have been an undue barrier to small business
growth. The many benefits of the health reform law for small
businesses remain in place. These tools are already helping
small business owners find more affordable and accessible
coverage for themselves and their employees.”
House Ways and Means Committee Chairman Dave Camp, R-Mich.,
praised the repeal. “After nearly a year-long battle
to repeal the onerous 1099 provisions enacted by Democrats,
I am pleased the President has now signed their repeal into
law,” he said. “On the eve of Tax Day, small
businesses can finally breathe a huge sigh of relief that
one of the many burdens the Democrats’ health care
law would have placed on them has been repealed. Instead,
small businesses can focus more of their energies and resources
on creating jobs, not filling out yet another form for the
IRS.”