The U.S. Senate passed a bill to repeal the IRS Form 1099 reporting requirement Tuesday. The same bill was passed in the House earlier in March, and the measure now awaits action by President Obama, who has shown support for repeal.
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The 1099 tax reporting rule was included in the passage of the Patient Protection and Affordable Care Act last year. It was criticized by lawmakers from both parties in both chambers of Congress and the White House as being an over-burdensome paperwork mandate placed on small businesses.
It would have required small businesses to file Form 1099 for every business-to-business transaction totaling over $600.
\”Small businesses have been struggling to come up with a way to account for this burdensome tax reporting mandate, and it has been the top priority of NFIB to see it repealed,\” said Susan Eckerly, senior vice president of federal public policy at National Federation of Independent Business.