The U.S. House of Representatives voted 314 to 112 on March 3 to repeal Form 1099 reporting requirements that would create a mountain of paperwork for small businesses. The requirement, passed last year as part of the healthcare bill and scheduled to start in 2012, would require businesses to file an IRS Form 1099 for each vendor they purchase $600 in goods or services from in any given tax year.
The House repeal, called the Small Business Paperwork Mandate Elimination Act of 2011 (H.R. 4), would strike all new expanded IRS Form 1099 reporting requirements for small businesses and owners of rental real estate. The measure would make up for lost Treasury revenues by reducing any overpayments in health insurance exchange subsidies established under the new health care law.