The National Retail
Federation welcomed a vote March 3 by the House of Representatives to repeal
the requirement that would increase the number of IRS 1099
tax forms businesses must file.
The Senate voted to repeal the requirement Feb. 2. However, the
two versions differ in how to make up the lost revenue. President Obama has
signaled his support for repeal.
“The important thing now is for the House and Senate to come
together on a final version of repeal and settle this issue as quickly as
possible,” NRF senior vice president for government relations David French said
in a statement.
The 1099 provision, part of the Patient Protection and
Affordable Care Act of 2010, would require businesses, beginning in 2012, to
file a Form 1099 with the Internal Revenue Service whenever they make
non–credit card payments totaling $600 or more to a vendor during a single
year. Federal law has long required a Form 1099 when a business pays $600 a
year or more to an individual or unincorporated business for services, but the
new provision extends the requirement.
Seth Shipley, owner of Shipley’s Diamonds and Fine Jewelry in
Hampstead, Md., testified
against the measure on behalf of NRF before the House Small Business Committee
on Feb. 9.
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