Anyone who has heard of the new 1099 law has been dreading end of year reporting for 2011. New requirements would force businesses to send 1099’s to all their vendors, even corporations or those from whom we buy goods, like Best Buy. Yes, anyone you paid more than $600 to, for any reason, would be subject to 1099 reporting.
The Senate fought over several drafts of a measure to repeal the law, finally passing an amendment repealing the changes in the 1099 requirements. The House of Representatives took its sweet time but finally passed the “Comprehensive 1099 Taxpayer Protection and Repayment of Exchange Subsidy Overpayments Act of 2011” two weeks ago, which repeals the additional 1099 requirements. So it looks like we are out of the woods on that one.
Well, not so fast. Just like the original 1099 reporting requirements were a “rider” to the health care legislation, House Reps included riders in the legislation to repeal the new 1099 requirements that are opposed by the president. Confused yet? This means the president may veto the law and send us all back to the old drawing board. Meanwhile small business owners are advised to start collecting 1099 information on anyone you say hello to just to be on the safe side.
You have to love politics.