President Barack Obama signed into a law Thursday a bill repealing the unpopular 1099 tax-reporting requirement that was passed last year as part of the Patient Protection and Affordable Care Act of 2010.
Earlier this month, the Senate, in a bipartisan effort, voted 87-12 to repeal the provision. The House repealed it earlier in 2011 by a vote of 314 to 112.
http://www.nrn.com/article/1099-tax-requirement-appealed
Opponents of the 1099 provision — which the president earlier had termed “burdensome” —said the measure would have created an onerous amount of paperwork for restaurant operators and other small-business owners.
If enacted, it would have required that businesses fill out a 1099 form for every noncredit card business expense over $600 for all types of vendors.
The expanded 1099 requirement was included in the PPACA as a means of helping to pay for the new law by enabling the Internal Revenue Service to track more money owed in taxes. Proponents said it would raise more than $17 billion over a decade.
Contact Paul Frumkin at [email protected].
