Hope Is On the Horizon- 1099 Law on the Road to Repeal

On March 3, 2011, the House of Representatives passed the Small Business Paperwork Mandate Elimination Act of 2011. This bill would repeal the 1099 reporting requirements outlined in the Patient Protection and Affordable Care Act. It would also eliminate the 1099 reporting requirements already in effect from the Small Business Jobs Act for taxpayers who receive rental income. Last year, the Patient Protection and Affordable Care Act expanded the 1099 reporting requirements to include all payments of $600 or more for goods and services, including corporations. This provision was designed to finance the new health care reform. However, the administrative burden created from the new requirements could cripple small businesses. In order for the law to repeal, the House and Senate must reach an agreement on how to offset the cost of the health care reform. We recommend that you continue to track your expenses as if the reporting requirements will continue in 2011. We will keep you posted as this story develops.