The 1099 reporting requirement that is scheduled to go into effect in 2012, causing a huge new reporting burden for organizations, is now closer to being repealed. (The new requirement, stemming from the passage of the health care reform legislation last year, greatly expands reportable payments.) Specifically, repeal efforts include the following:
The Senate passed legislation in early February (S. 223 related to the Federal Aviation Administration and unrelated to 1099 reporting) that includes a provision to repeal the new 1099 reporting requirement.
The House Ways and Means Committee unanimously approved legislation in mid-February, H.R. 4, that would repeal the new 1099 requirement; it is now with the full House.
says... Posted Tuesday, March 15, 2011
Both the House and Senate have passed measures to repeal the 1099 provision in the 2010 health care reform legislation:
1. H.R. 4 – Originally called the Small Business Paperwork Mandate Elimination Act of 2011; later changed to Comprehensive 1099 Taxpayer Protection and Repayment of Exchange Subsidy Overpayments Act of 2011
2. S. 223 – Actually pertains to the FAA and only a small section (Title XI, Sec. 1101) addresses the 1099 issue.
In response to Scott's specific question, the House bill removes all of the changes to 1099 reporting noted in the health care legislation. The Senate wants to retain part of the 1099 provision (one that relates to 1099 requirements on landlords). Maybe the original name of the House bill (noted above) is what made it appear that it was only for small businesses.