President Obama Signs Repeal of 1099 Reporting Bill

Small businesses will not have to file separate form for any payments to vendors in excess of $600

More On Tax Planning

from The Advisor's Professional Library
  • Cafeteria Plans The income tax treatment of cafeteria plans is key to their popularity. Learn how to maximize the tax benefits of these “flexible benefit plans”.
  • Health Insurance: Health and Medical Savings Accounts A Health Savings Account is a trust created exclusively for the purpose of paying qualified medical expenses of an account beneficiary. Although they are popular, they are not without their pitfalls and the regulations can be complicated. Learn more about how to avoid federal taxation on the accumulation and distributions of HSA.

President Barack ObamaPresident Barack Obama on Thursday signed into law H.R. 4, legislation repealing the requirement under the Patient Protection and Affordable Care Act (PPACA), that all employers file separate 1099 forms with the IRS beginning in 2012 for any payments to vendors in excess of $600, not just to independent contractors.

“Today, I was pleased to take another step to relieve unnecessary burdens on small businesses by signing H.R. 4 into law,” said Obama in a statement. “Small business owners are the engine of our economy and because Democrats and Republicans worked together, we can ensure they spend their time and resources creating jobs and growing their business, not filling out more paperwork.”

Dave Camp, R-Mich., chairman of the House Ways and Means Committee, said in a statement the same day, “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.”

With Tax Day occurring Monday, Camp said, “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a huge sigh of relief that one of the many burdens the Democrats’ health care law would have placed on them has been repealed.”

Reprints Discuss this story
This is where the comments go.