Expanded 1099 Reporting Requirement Repealed

Today, the Senate passed legislation to repeal the expanded 1099 reporting requirement by a vote of 87 yeas to 12 nays. Since the identical bill has already passed in the House, it will now be sent to the President to be signed into law.

Under current law, businesses are required to file a 1099 form only for services to individuals costing more than $600 annually. However, last year Congress expanded the 1099 reporting requirement to include goods in addition to services. As of January 1, 2012, businesses would have been required to complete and file a MISC 1099 form for each payment of $600 or more for both goods and services to individuals and to corporations of any size (consider the burden of tracking and reporting every $600 airplane ticket or hotel stay).

Repealing the expanded requirement is a win for women-owned small businesses. Without this repeal, small businesses would have faced a substantial increase in paperwork burden shifting the focus of resources that could otherwise be devoted to business growth. WCOE was involved in this fight, joining many other small business organizations in a call for repeal.