Effort to Repeal New 1099 Reporting Requirements Picks Up Support

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Democrats have begun joining Republican efforts to repeal a tax provision in the recent health care reform law that would require businesses to file a 1099 tax form for anyone paid over $600 in the course of business. 

As we have previously detailed here on our blog, the changes would drastically increase the reporting requirements by now requiring 1099’s to be filed no matter what type of entity is being paid (including corporations) and for purchases of goods in addition to services.

Sen. Bill Nelson, D-Fla., says that businesses with fewer than 25 employees should be exempt from the requirement and that the reporting threshold for larger businesses should be set at $5,000 rather than $600.

We will continue to track and update you on this topic.

UPDATE:

Below are some stories recently prepared by NPR related to the new 1099 reporting requirement and the negotiations in Congress to deal with it:

http://www.npr.org/templates/story/story.php?storyId=129861232

http://www.npr.org/templates/story/story.php?storyId=129874294

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