Farm Futures
   Search Site:  Search Site Monday, April 21, 2014 | Bookmark This Site   
Skip Navigation Links
Home
Markets
News
Weather
Farm Futures NOW!
Magazine Online
RSS News
Mobile
Subscribe
Reprints
Register
Login
About Us
Advertise

President Signs 1099 Repeal

DC Dialogue

Congress and president signs bill which would have required extra paperwork for small businesses and farms.

Published on: April 15, 2011

A provision in the health care reform bill requires that, starting in 2012, businesses submit a Form 1099 to the Internal Revenue Service for every vendor from which they purchase $600 or more worth of goods or services. However, the House and the Senate passed H.R. 4, which would repeal this new requirement. President Barack Obama signed the bill into law April 14.

Congress also repealed a second provision that would have required landlords paying any service provider $600 or more to file a 1099. Congress originally enacted the two provisions to generate revenue to help pay for the cost of the health care bill -- anticipated revenues of $25 billion over 10 years.

Gary Hoff, tax specialist at the University of Illinois, said, "We will have to wait and see how (Congress) will replace this revenue."

Agricultural groups welcomed the repeal. “This was a costly, burdensome and unnecessary tax compliance requirement that was counterproductive to job creation and economic growth,” said Bob Stallman, American Farm Bureau Federation president. “Farmers, ranchers and small businesses are overloaded with paperwork, and we are pleased that our leaders in Washington took steps to provide relief.”  

The White House said in a statement following the Senate vote it is "pleased Congress has acted to correct a flaw that placed an unnecessary bookkeeping burden on small businesses."