Senate Passes 1099-Repeal Act

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Senate Passes 1099-Repeal Act to Relieve Small Business Owners of Burdensome Reporting Mandates

The Senate voted Tuesday to repeal a tax-reporting requirement that was criticized for being too burdensome, especially for small business owners. The 87-12 vote sends the measure to President Barack Obama, who is expected to sign it.

The bill repeals Section 9006 of last year’s Patient Protection and Affordable Care Act in which business owners, starting next year, were going to be required to use 1099 IRS tax forms to report all transactions greater than $600. It also repeals a requirement passed in the small-business lending bill in which people receiving rental income must distribute and file 1099 forms on payments made in excess of $600 annually. Read more…