1099 Requirement Likely to be Repealed

The House of Representatives will likely vote next week to
repeal the new 1099 reporting requirement, according to Washington
D.C. newspaper The Hill.

The Senate voted to repeal the measure on
Feb. 2
. President Obama has signaled
his support
for repeal.

Beginning in January 2012, the regulation would require
businesses to file an IRS Form 1099 for any vendor to which they pay more than
$600 annually. Previously, businesses only had to file 1099 forms for
individuals/partnerships performing professional services (such as independent
contractors) that crossed the $600 threshold.

Jewelers of America opposes the new reporting requirement, which was originally part of President Obama’s Affordable Care Act. On Jan. 28, JA launched a campaign against the measure, calling it an “undue burden on small businesses.”

On Feb. 9. Seth Shipley, owner of Shipley’s Fine Jewelry in
Hampstead, Md., spoke
at a hearing of the House of Representatives Small Business Committee against
the bill. His testimony can be seen here.

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