1099 repeal re-introduced

Legislation to repeal the expanded 1099 reporting requirements was reintroduced in January by Rep. Dan Lungren (R-Calif.), according to Drew Gruenburg, COO of Society of American Florists (SAF). The Small Business Paperwork Mandate Elimination Act (H.R. 144) already has 189 cosponsors, including seven Democrats. SAF expects a Senate version to be introduced shortly.

 

The 111th Congress adjourned without any positive action on repeal despite agreement by Democrats, Republicans and the White House that the requirement is unduly burdensome and should be eliminated. 

 

The 1099 expanded reporting requirements are included in the new health care law. The provisions would require all businesses to submit a 1099 tax form to the Internal Revenue Service for purchases of more than $600 in goods or services in a year. The mandate is to take effect in 2012, if not repealed.