Monday, June 6, 2011

Congress Gives Employers A Break

Recently, Congress repealed the expanded 1099 information reporting requirements that were imposed by the Patent Protection and Affordable Care Act ... most of you know it as "Obama Care." The requirement mandated that payments totalling at least $600 in a single calendar year to a single entity be reported to the IRS. Reporting on Form 1099 was required when the payor was considered to be engaged in a trade or business and made the payment in connection with that trade or business.

Had this requirement remained, it likely would have wreaked havoc on small businesses. The mountains of paperwork would have been costly to create and process, and could have actually impeded business development and expansion. Indeed, the latter could have resulted in a loss of existing jobs or the inability to create new jobs. Congress did something right for a change in repealing the requirement. Let's hope this is not the end of its progress.

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