Jewelers of America applauded the Senate’s recent repeal of the IRS 1099 reporting requirement, the group announced April 6.
The Senate passed H.R.4, “The Small Business Paperwork Mandate Elimination Act of 2011,” by a vote of 87-12, on April 5. It repeals the 1099 provision enacted as part of the health care reform law. The House had passed the measure on March 3. President Barack Obama is expected to sign the bill into law over the next few days.
The provision would have required businesses, starting next year, to file an IRS Form 1099 for any vendor to which they pay more than $600 annually. With the repeal, businesses can continue to follow the current rule, only filing 1099 forms for an individual or unincorporated business performing professional services (such as independent contractors) that cross the $600 threshold.
“The 1099 requirement would have been another regulatory
obstacle for businesses to overcome as they climb out of the downturn,” Matthew A. Runci, Jewelers of America president and CEO, said in a statement. “Thankfully, legislators got the message.”
JA launched a campaign against the requirement Jan. 20. More than 450 messages were sent through the system, to legislators all over the country. One of the people testifying against the law in Congress was Maryland jeweler Seth Shipley.
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