U.S. House Votes to Repeal Form 1099 Reporting Requirements
Beginning in 2012, the reporting requirement would force businesses to issue a form 1099 to every vendor from whom they buy $600 worth of goods or more in a given year. Unless repealed, this will create a tremendous burden on businesses of all sizes across the country, including all TRALA members. Companies will have to issue hundreds or even thousands of forms each year, as well as obtain the tax identification information for each vendor that they do business with. Before this provision was passed as part of the health care law, businesses would only have to file forms 1099 with the IRS when they purchase more than $600 in services from a vendor. This new provision adds purchases of all goods to that requirement.
The House vote to repeal form 1099 reporting requirements follows similar action by the Senate in February, when the Senate voted to repeal the reporting requirement as an amendment to the Federal Aviation Administration (FAA) reauthorization bill. The amendment to the FAA reauthorization was sponsored by Senator Debbie Stabenow (D-MI), but that bill does contain some differences compared to the version passed by the House. The fact that both houses of Congress have voted to repeal this onerous and burdensome reporting requirement signals that repeal is close to becoming a reality. The Obama administration has also stated that they support repeal of form 1099 reporting requirements because it would "place an unnecessary bookkeeping burden on small business."
If you have any questions, please contact TRALA's Joe Sculley at email@example.com or at 703-299-9120.