1099 Repeal: Senate Passes House Bill Measure Goes to President for Signature

Finally the Senate voted today 87 to 12 to repeal the new 1099 tax provision reporting requirement, which would have required all businesses to file a form 1099 when paying any business or individual $600 or more for goods or services; this provision was set to go into effect in 2012.

After much political maneuvering, Senate Leader Harry Reid agreed to take up the House-passed version of the repeal, H.R. 4. The Senate’s approval of the House-passed legislation (without amendment) means that it now will go directly to the President for his signature. President Obama already has indicated his support for repeal, and we expect this legislation will be signed into law shortly.

Today’s vote represents the final step in a year-long campaign. While most everyone supported repeal, political posturing created difficulty in agreement on a funding mechanism. With this clear acknowledgement of the need to free small businesses from onerous tax compliance burdens, we hope the House and Senate will continue other efforts that address the needs of small businesses.