President Signs 1099 Repeal into Law
April 15, 2011
President Barack Obama signed into law the Comprehensive 1099 Taxpayer
Protection and Repayment of Exchange Subsidy Overpayments Act of
2011 yesterday (HR 4; 1099 Act). The Senate approved the bill April
5 and the House on March 3. Under the terms of the repeal, businesses
will no longer be required to issue 1099 forms to all vendors from
whom they buy more than $600 worth of goods or services in any year,
beginning in 2012. The requirement was intended to prompt vendors
receiving 1099 forms to pay taxes on the income.
After signing the bill into law, President Obama said, "I
was pleased to take another step to relieve unnecessary burdens
on small businesses by signing H.R. 4 into law. Small business owners
are the engine of our economy and because Democrats and Republicans
worked together, we can ensure they spend their time and resources
creating jobs and growing their business, not filling out more paperwork."
Need more info and analysis about the issues?
Subscribe to AGRR Magazine.