Today, the U.S. Senate passed the House’s 1099 repeal bill, H.R. 4, in an 87-12 vote. The bill will go directly to the White House where President Barack Obama will have the opportunity to sign or veto the bill.
The 1099 reporting requirements is part of funding provision of the 2010 health care law. It required all for-profit corporations to issue 1099 forms to vendors from which they purchased over $600 of goods or services in a tax year, and is scheduled to go into effect for all payments made after December 31, 2011.
The Senate vote comes after months of debate about the impact of the reporting requirement on small businesses and how to cover the cost for the 1099 repeal, which is estimated at nearly $22B over the next 10 years.
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