President Barack Obama has signed a repeal of a 1099 tax reporting mandate for business that passed both the House and Senate with bipartisan support
The 1099 reporting mandate was passed last year as part of the Patient Protection and Affordable Care Act as a way to partially offset its cost. It was intended to increase tax compliance by requiring businesses to file a 1099 for all business-to-business transactions for goods or services totally over $600 cumulatively over the tax year.
The repeal was met with applause by small business groups including the Independent Insurance Agents & Brokers of America, the Big “I,” which is holding s annual legislative conference in Washington this week.
“The Big ‘I’ is grateful to President Obama for signing this important bill into law,” said Robert Rusbuldt, the group’s president and CEO. “In a strong show of bipartisan cooperation, the president and Congress have done the right thing by standing up for small businesses and repealing the 1099 reporting mandate. Our thousands of small business members and their clients will breathe easier knowing this ill-advised provision will not take effect.”
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