PROGRESS ON REPEAL OF EXPANDED 1099 REPORTINGBondBeebe
Brian Wynne, CPA
Last Wednesday, the Senate voted 81-17 in favor of an amendment to roll back the expanded 1099 reporting provisions passed as part of the healthcare bill. The expanded provisions are currently scheduled to take effect after 2011 and would add payments of goods to the list of items that must be reported on Form 1099. The healthcare bill also expands reporting to include payments to corporations (who were previously exempt from the reporting requirements). Included as a revenue-raiser in the healthcare bill, these new 1099 provisions have been widely criticized due to the burden on small businesses. After the President signaled his willingness to accept repeal of the expanded provisions in his 2011 State of the Union address, it was widely expected that the new 1099 reporting law would be changed. The Senate has taken that first step toward repeal. Unfortunately the Senate vote to repeal has no effect on the new 1099 reporting provisions that apply to rental expenses incurred in 2011 and beyond.