President Obama signed into law H.R. 4, the “Comprehensive 1099 Taxpayer Protection and Repayment of Exchange Subsidy Overpayments Act of 2011,” which repeals the expansion of requirements for businesses to report information to the IRS on payments for goods of $600 or more annually to other businesses.
President Obama said, “…. I was pleased to take another step to relieve unnecessary burdens on small businesses by signing H.R. 4 into law. Small business owners are the engine of our economy and because Democrats and Republicans worked together, we can ensure they spend their time and resources creating jobs and growing their business, not filling out more paperwork.”
Earlier this month the Senate voted 87-12 to repeal the requirement after the House adopted the measure, 314-112, in March. Because the House and Senate approved identical legislation, the bill went to the President.
The Form 1099 provision was set to begin in 2012. The government planned to tax revenues reported on 1099 forms to raise money to fund health care reform.