US Businesses can now breathe a big sigh of relief. On Tuesday, the US Senate passed legislation to repeal the expanded 1099 information tax return requirements which were part of last years health care legislation as well as the 1099 reporting requirements for individual taxpayers that receive rental income. The US House of Representatives had already passed the same bill on March 3rd, so it now will go to the President for his signature.
The repeal addresses two pieces of legislation that were enacted in 2010, the Patient Protection and Affordable Care Act (PPACA) and the Small Business Jobs Act. Under PPACA, businesses would be required to send a 1099 to virtually all vendors in which purchases exceeded $600. The Small Business Job Act further expanded 1099 reporting, by subjecting small landlords to send 1099 (previously individual landlords were exempt from 1099 reporting).
Nearly all business organizations supported the repeal efforts as costs of compliance were expected to be significant. Both Senator Scott Brown and Senator John Kerry voted for the repeal. The entire Massachusetts Congressional delegation voted against the repeal. It is expected that the President will sign the bill into law.
More from this blog on: Taxes