1099 Bill Repealed

We have news for you today regarding a small piece of the Patient Protection and Affordable Care Act (PPACA). As of Friday, President Obama has signed H.R. 4 – a bill that will repeal the Form 1099 reporting provision created by Section 9006 – into law.

The now-obselete Form 1099 requirement would have required a business entity to file a 1099 miscellaneous income reporting form with the IRS for all vendors whenever it had $600 or more in transactions with that vendor in a given tax year. The provision would have taken effect in January 2012.

Small business groups had argued that the provision would create a paperwork nightmare, forcing independent contractors to file a Form 1099 whenever they bought a computer or a suite of office furniture from a large retailer.

The new law created by H.R. 4, the "Comprehensive 1099 Taxpayer Protection and Repayment of Exchange Subsidy Overpayments Act of 2011," also repeals a separate Form 1099 information reporting requirement that would have been imposed on owners of rental real estate. House members voted 314-112 for H.R. 4 on March 3rd. The bill passed in the Senate by a vote of 87-12 on April 5th.

We imagine this will be welcome news for you - if you have further questions about the new law, please contact your Account Manager or Account Executive.