A new, onerous 1099-reporting requirement for small businesses and solopreneurs is about to be repealed. The reporting mandate was tucked in last year’s health-care reform legislation.
On Tuesday the U.S. Senate passed The Small Business Paperwork Mandate Elimination Act, H.R. 4, by a vote of 87-12.
The bill now has been passed by the House and Senate and will go to President Barack Obama. The White House has said he will sign the legislation.
The bill repeals Section 9006 of last year’s Patient Protection and Affordable Care Act in which business owners, starting next year, were going to be required to use 1099 IRS tax forms to report all transactions greater than $600 each year.
It also repeals a requirement passed in the small-business lending bill in which people getting rental income must distribute and file 1099s on payments made in excess of $600 annually, according to the Small Business & Entrepreneurship Council.