Senate Votes to Repeal 1099 Provision, Saves Freelancers Big Headaches

Last week, we were eagerly awaiting news on the status of new tax reporting requirements, and we’re happy to report that the U.S. Senate just voted to repeal this provision of the health care reform law. Without this repeal, the provision would have required you to file 1099 forms with the IRS for all payments of $600 or more to a single vendor, beginning in 2012. Businesses have long been required to issue 1099s for payments of services to individuals, but this provision would have increased reporting requirements for goods to corporations as well. The National Small Business Association estimated that if this provision took effect, small businesses would be filing 1099s for an average of eighty-six companies, instead of the current average of ten companies a year. Luckily, this pain in our collective necks will be avoided for good. The Senate voted 87-12 to repeal the provision, and now it awaits President Obama’s signature. (photo by Eva the Weaver, via Flickr)