House Votes To Repeal New 1099 Rules
March 8, 2011
House of Representatives voted last week to repeal new 1099 tax reporting rules
that are set to go into effect next year. The Senate has also voted to revoke
the measure, but the two government branches now have to agree on a bill before
President Obama can sign it.
original law, which was part of last year’s health care legislation, mandated
that beginning in 2012 companies would have to file 1099 tax forms for every
vendor that they paid more than $600 to in a given year. The business community
and the U.S. Chamber of Commerce have claimed that the measure would burden
small businesses with unnecessary paperwork. The House voted by a 314-112
margin to repeal the new rules and restore the requirement that businesses file
1099 forms only for transactions with non-corporate entities, such as
purpose of our bill is to help employers do what they do best," said
Representative Dan Lungren (R-CA), the lead sponsor
of the House measure. "Plain and simple, they create jobs."
President Obama has said that he supports repeal of
the 1099 provision placed in the health care law, there is disagreement about
how to make up for the lost tax revenue associated with it. The House and
Senate are now scheduled to negotiate a new version of the 1099 repeal measure,
and both sides hope to have a new bill on the president’s desk in the second
quarter of this year.