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H.R. 60 - Bill to Repeal New 1099 Requirements
As many of you know, in 2010, Congress passed new 1099 rules requiring employers to report payments to all vendors that receive $600 or more for goods or services. The rules take effect for the 2011 tax year and the only exemption provided is payments to utility companies. This is a massive expansion of the current rules that apply only to non-corporate service providers and effectively means that almost every vendor will require a 1099. Compliance with these rules will be an enormous undertaking for everyone.
Fortunately, on January 5th, Representative Scalise introduced H.R. 60 to repeal these new requirements, a copy of which is attached. We will continue to follow this bill and will keep you apprised of any developments.
The Content of the One Page Bill is below:
A BILL
To repeal the expansion of information reporting requirements for payments of $600 or more to corporations, and for other purposes.
Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,
SECTION 1. REPEAL OF EXPANSION OF INFORMATION REPORTING REQUIREMENTS.
Section 9006 of the Patient Protection and Affordable Care Act, and the amendments made thereby, are hereby repealed; and the Internal Revenue Code of 1986 shall be applied as if such section, and amendments, had never been enacted.