The controversial 1099 filing provision for small businesses was voted down by the Senate.
If you’re a small business owner, youll be pleased to know that the Senate recently repealed the onerous 1099 filing provision created by the healthcare overhaul. As Gaebler reports and Robb Mandelbaum of The New York Times discusses, the Senate has passed a measure to repeal the expanded 1099 report provisions and President Obama has expressed that he would welcome the repeal.
The burden of such expanded provisions is something that many small businesses have dreaded, requiring companies to file a 1099 form for each vendor with whom they spend more than $600 in goods or services over the tax year. Of course, since this includes any possible expense from copy paper to coffee it easily adds up to too much paperwork and too much time spent away from productive activities (like running the business.)
There’s little doubt about the fact that larger scale politics is playing a hand in the matter. Many are touting the repeal as the first skirmish and Republican victory in the assault on President Obama’s landmark legislation, perhaps good news for those not in favor of that law, while many view it as necessary revision.
The Obama Administration itself issued its own statement after the Senate vote, saying, "Small businesses are the engine of our economy and eliminating the 1099 reporting requirement is the right thing to do. As we move forward, we look forward to improving the tax credit policy in this legislation to ensure we protect small businesses and middle-class families."
Tags: Expanded 1099 reporting provision, health care reform, Obama Administration, Small business