House repeals 1099 requirements: Now what?
March 4, 2011 by Jared BilskiPosted in: Government, In this week's e-newsletter, Latest news & views
The House just approved a bill to do away with the expanded 1099 reporting requirements, and the Senate passed its own measure last month. Problem is, the Obama administration isn’t crazy about either one.
The House bill, H.R. 4, “The Small Business Paperwork Mandate Elimination Act of 2011, was introduced by Rep. Dan Lungren (R-Calif.) and was approved by a vote of 314-112.
While every Republican approved the bill, a number of Democrats opposed it — mainly because they feel it would impose hefty tax increases on middle-class taxpayers.
The House is hoping the Senate will act quickly and approve their 1099 repeal bill, so the bill can be sent to the President in the near future.
But when it comes to recouping the revenue the expanded 1099 reporting requirements would generate, the Obama administration opposes both the Senate and the House bill. The administration says the House bill “would result in tax increases on certain middle-class families” and the Senate version “could cause serious disruption in a wide range of services.”
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Tags: 1099 reporting requirements, H.R. 4, House, Obama Administration, President, Rep. Dan Lungren, Senate, The Samll Business Paperwork Mandate Elimination Act of 2011
March 8th, 2011 at 10:06 am
“Obama administration opposes both the Senate and the House bill. The administration says the House bill “would result in tax increases on certain middle-class families” – it always bites the middle class no matter what is decided
March 14th, 2011 at 2:23 pm
Huh? I don’t understand how this requirement created tax revenue in the first place. 1099′s are issued on a ‘cash’ basis, most businesses file taxes on an ‘accrual’ basis. Makes no sense, never did, never will.
May 1st, 2012 at 10:01 am
Nonsense, when a business uses an independent contractor for doing anything, over $600, you issue a 1099 at the end of the year. The 1099′s are reported to the IRS so they know who got money during the year, when they are not employees of a company. This is how the revenue is created on 1099′s. It doesn’t matter whether that company is a cash or accrual company. If you use someone to do work at your business, that is not an employee, you issue a 1099.