U.S. Senate repeals 1099 tax requirement

With overwhelmingly bipartisan support, the U.S. Senate voted 87-12 today to repeal the 1099 tax reporting requirement passed last year as part of the health care reform law. Starting in 2012, the provision would have required businesses to file a 1099 tax form every time they made purchases of $600 or more from a vendor, creating an inordinate amount of paperwork and greatly increasing costs for small business. The Senate passed the House 1099 repeal bill without changes, meaning the bill now heads to President Obama’s desk. The President, who has recognized the requirement as unfairly cumbersome to employers, is expected to sign it soon.