1099 rules on life support after Senate votes to repeal
Our long national nightmare is nearly over.
Following the House's earlier lead, the Senate has passed a bill that repeals the onerous 1099 reporting requirements outlined in the 2010 health care reform package. The bill now heads to the White House, where Preisdent Obama is expected to sign it. In his State of the Union speech in January, Obama indicated that he would support efforts to repeal the 1099 rules.
Those rules would have forced businesses to report to the IRS every purchase of $600 or more from a vendor of goods or services, beginning with purchases made in 2012.
Shortly after the Senate's action, inboxes and Twitter streams were choked with statements from small business officials praising the move.
- AICPA President Barry Melancon called it "a victory for taxpayers," adding, "The AICPA had advocated strongly for the repeal of these reporting requirements because the increased burden on taxpayers and the time consuming process the IRS would have to use to reconcile millions of forms is too costly."
R. Bruce Josten, executive vice president for government affairs with the U.S. Chamber of Commerce, said that "with small businesses struggling to grow and create jobs, the last thing they need is the federal government burying them in senseless paperwork. This action is a positive step towards reducing the overreach of government and allowing the private sector to help guide our economic recovery." Kevan Chapman, a spokesman for the National Federation of Independent Business, told CFO.com that the measure "is a gigantic victory for small businesses."
You get the idea.
This is one of those rare cases in which nearly everyone agrees on what needs to be done. My only question is: Why'd it take our political leaders so long to act? It seems like a simple matter of common sense.
Oh ... that's why.