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President Obama Signs Repeal of Burdensome Tax Mandate

Apr 26, 2011

On April 14, President Obama signed H.R.4, The Small Business Paperwork Elimination Act, into law, repealing the 1099 tax-reporting provision contained in the healthcare reform law passed last year. Without the repeal, small businesses would have been mandated to satisfy several new 1099 requirements. The legislation was previously passed by the House and Senate with overwhelming bipartisan majorities earlier this month. While businesses must continue to issue a 1099 form for each unincorporated service provider it pays over $600, starting in January 2012, the new mandate would have applied to ALL vendors, significantly increasing dealerships tax reporting duties. The business community argued that the added burden would have unnecessarily increased tax paperwork at a time when the nation’s economic growth remains fragile.