President Obama has signed into law H.R. 4, which repeals the IRS Form 1099 reporting requirements. The move was applauded by the National Association of Trailer Manufacturers, which had joined a coalition of associations and small businesses supporting repeal of what it called “onerous reporting requirements.”
Enacted as part of the landmark Patient Protection and Affordable Care Act passed by Congress in March 2010, the Form 1099 requirements would have forced all businesses and tax-exempt organizations to issue a Form 1099 to vendors from whom they buy goods totaling $600 or more annually. The change, which was scheduled to take effect in 2012, could have resulted in associations having to issue hundreds or even thousands of forms each year, track cumulative payments to vendors, and obtain tax identification information from each vendor.
On April 5, the Senate voted 87 to 12 to repeal the requirement. The House adopted the measure in March, 314 to 112. Because the House and Senate have approved identical legislation, the bill went to the President, who signed it on April 14.
The government planned to tax revenues reported on 1099 forms in order to raise money to fund health care reform.
For additional information please contact Pam O’Toole at [email protected] or at NATM Headquarters, (785) 272-4433.