The Senate on Nov. 29 failed to approve legislation that would have repealed the expanded Form 1099 reporting requirements for small businesses that's set to take effect in 2012.
As the Financial Services Institute (FSI) noted in a recent alert to its members, the Senate failed to pass both amendments to the Patient Protection and Affordable Care Act (PPACA) "that would have repealed the requirement for financial advisors, and other businesses, to provide a Form 1099 to vendors and the IRS for purchases of $600 or more." FSI says that it believes this will be the last vote on the 1099 issue this year, which leaves "only one calendar year before the new 1099 reporting goes into effect."
FSI says that it will continue to work for repeal of the Form 1099 requirements because it imposes an "extremely burdensome information reporting requirement on small businesses, including independent financial advisors"; and that the burden of the reporting requirement cannot be justified by the limited utility that the Form 1099 will provide the government.
