The U.S. Senate passed HR 4, the bill to fully repeal the expanded 1099 reporting contained in last year’s health care law.
While the repeal is not finished until the President signs this bill into law, the effort could not have gotten this far without the involvement of Home Builders around the country. In addition to Home Builders, hundreds of associations around the country, all representing small businesses just like Home Builders, weighed in to tell Congress with one voice that repealing the new 1099 requirement was a top priority and one of the most important issues all small businesses will face in the coming year.
If allowed to stand, the new 1099 requirement will take effect on January 1 and require all businesses to obtain W9 forms, and issue 1099 forms, to every person and business with whom they do business, regardless of the amount transacted. Experts estimate that the average business will need one full-time employee just to comply with the requirement.
HR 4 now heads to the President’s desk for his consideration.