The reporting mandate requires small businesses to file a 1099 form with the Internal Revenue Service for every vendor that businesses pay more than $600 in a year, and would have created a heavy burden for small businesses through unnecessary paperwork.
The House bill faces difficult hurdles in the U.S. Senate. Both chambers have voted several times to repeal the legislation, each time failing to reach common ground on how to cover the cost of the lost revenue. The Senate passed its own version of the repeal in February; however, the House would not agree to the budget offset.House and Senate leaders have said they will work together to come to an agreement on an offset that is acceptable. Rep. Eric Cantor, R-Va., House majority leader, said the next move will have to be negotiation.
“We’ll have to see where the differences lie between the two bills,” Cantor said. “Hopefully we can get this to the president’s desk as quickly as possible.”
To view further information on the markup and repeal of the 1099 mandate, visit ASA’s legislative website.
For additional information visit www.asashop.org.