By: Ann Sullivan, Madison Services Group, Washington, DC
Every business owner knows how much time can be consumed tracking down 1099 information. Currently, the law requires businesses to file a 1099 form for services costing $600 or more per year. Last year, Congress expanded the 1099 reporting requirement to include goods in addition to services. Starting in 2012, businesses will be required to file 1099 forms for payments or $600 or more for goods and services. That is unless Congress repeals it.
Earlier this month the Senate overwhelming voted in favor of this repeal. Last week, the House Ways and Means Committee voted to repeal it as well. Now the House could vote on this as early as next week. The next step is a stop at the President’s desk and he has already said he will sign it.
WCOE was involved in this fight, joining many small business organizations in a call for repeal. This united front made it impossible for the Congress and the White House to ignore. The fact that the IRS Taxpayer Advocate told the Congress that enforcement of this expansion would be impossible also assisted our efforts. When the repeal goes into effect, WCOE’S advocacy will have paid off. Less tracking down EIN and SSN numbers will allow its members to devote time to worthwhile activities, such as growing their businesses.