Back in August, we shared our thoughts on the Massive Scope Expansion of the Form 1099. Congress expanded the types of transactions on which to require Form 1099 reporting, and also said that businesses must now also report on all purchases from corporate sellers, as well. The administrative burden alone would be a killer for small businesses.
As reported in AccountingToday on Friday, several Senators are urging the House to repeal the 1099 reporting provision. As it stands right now, businesses are required to file a 1099 form with the IRS for each vendor with whom they have $600 or more in transactions during the year. The Senate tried, unsuccessfully, several times last year to repeal the 1099 provision. Let's hope for the sake of US small businesses that the House and Senate can work together to make this happen.