Finally, the fight against the 1099 form expansion built into the nation’s healthcare reform package — and ridiculed as “The Paperwork Salvation Act of 2010” — has reached a satisfying conclusion. It was repealed last month.
“After a hard-fought, year-long battle on the 1099 legislation, today’s vote is a huge victory for all LBM dealers across the country,” said Scott Lynch, National Lumber & Building Material Dealers Association (NLBMDA) executive VP. “Thanks to all of the hard work from all of the NLBMDA members for really pressing this issue with their respective representatives and senators, and to those who traveled to Washington for the NLBMDA Legislative Conference to make the case in person. This is a huge relief for businesses of all sizes.”
President Obama signed the repeal legislation in mid-April, about a month after the NLBMDA’s Legislative Conference took place in Washington, and dealers canvassed the capital armed with talking points aimed at grounding the onerous 1099 mandate.
Before it was repealed, the rule would have required small businesses to file an IRS Form 1099 on all purchases of $600 or more.
Visit dealer.org for more on the 1099 issue and other legislative updates.