The Senate voted last week to repeal the measurement to require all businesses to issue Form 1099’s to everyone they pay $600 to in a calendar year for goods and services. You may remember the President Obama hinted at the endorsement of the repeal during the State of the Union addresss this past January.
Several executives of small businesses testified in front of the House Committee of Small Business stating the impact on their respective businesses. They testified to the undo burden it will put on their business as to time and cost. One business owner said he estimated it would cost approximately $9,000 the first year to have his bookkeeper comply with the regulation.
Let’s keep our fingers crossed that this law gets repealed before it goes into effect on January 1, 2012.