Senate votes to repeal 1099 reporting requirement

Good news - for all small businesses and landlords.

The Senate has approved a measure that would repeal the expanded Form 1099 reporting requirements that were part of last year's health care law. The move has broad support because the Form 1099 rules, which are set to require businesses to report any purchases of more than $600 of goods and services from vendors in a year to the Internal Revenue Service, are expected to increase accounting costs for small businesses.

The AICPA (American Institute of CPAs) supports repeal of the expanded Form 1099 reporting requirements; however, it has asked the Treasury Department for guidance on several pressing issues if the rules are not repealed.

Read the AICPA's comment letter on expanded Form 1099 reporting requirements. Accounting Today (02/02)