1099 Repeal Now Official

Congress has passed and the President has signed legislation that repeals the expanded 1099 information reporting requirements in the health care reform law. The measure enjoyed rare bipartisan support. The requirements, which were included in the Patient Protection and Affordable Care Act (PPACA), would have required businesses to report to the Internal Revenue Service any purchases of goods and services over $600 a year from another business or individual. This was designed to generate additional tax revenue to help pay for PPACA. Small business groups including the American Dental Association have been lobbying hard for repeal. According to senate leaders, eliminating these paperwork requirements lets small businesses focus on the critical work of growing their businesses and creating jobs, instead of filling out paperwork for the IRS.