President Barack Obama last week signed legislation, H.R. 4, to repeal the expanded 1099 reporting provision that was included as a pay-for in the Patient Protection and Affordable Care Act (PPACA). If allowed to run its course, this provision would have drastically expanded the number of companies on which small firms would be required to file a 1099 report.
“Repealing this egregious provision has been a top priority for NSBA,” stated NSBA President Todd McCracken. “We applaud Congress and the President taking the necessary steps to prevent a massive new burden on America’s small businesses.”
Nearly one year ago, Congressman Dan Lungren (R-Calif.) introduced a bill to repeal the expanded 1099 reporting provision which gained broad, bipartisan support. The House passed the most recent iteration of Lundgren’s bill, H.R. 4, on March 3, 2011. In the Senate, Sen. Mike Johanns (R-Neb.) led the charge for 1099 repeal and most recently offered mirror language to H.R. 4 which was approved April 5, 2011.
“Small-business owners can rest a little easier today knowing that efforts to expand 1099 reporting have been quashed,” stated Larry Nannis, CPA, NSBA chair and shareholder at Levine, Katz, Nannis + Solomon, P.C. “I applaud the efforts of the millions of small-business owners and NSBA’s members who made this key priority a key win.”
Please click here for more details on NSBA’s opposition to the expanded 1099 provision.