WASHINGTON — President Obama signed a bill into law last week repealing an unpopular reporting requirement attached to last year’s healthcare reform legislation.
Set to begin in 2012, the requirement would have asked businesses to issue an IRS 1099 form to any individual or corporation from which they purchased more than $600 in goods or services in a tax year.
Many small-business advocates had called the expanded requirement an unnecessary and unfair burden for small businesses, saying it would create a mountain of paperwork.
“Small businesses have been struggling to come up with a way to account for this burdensome tax reporting mandate,” Susan Eckerly, senior vice president of Federal Public Policy at the National Federation of Independent Business (NFIB), said in a release. “NFIB and its members are glad to finally see this ill-conceived rule removed from the books by Congress.”
“I was pleased to take another step to relieve unnecessary burdens on small businesses,” President Obama said in a statement. “Small-business owners are the engine of our economy, and because Democrats and Republicans worked together, we can ensure they spend their time and resources creating jobs and growing their business, not filling out more paperwork.”