Last Thursday the Senate passed the FAA Air Modernization and Safety Improvement Act 87-8. Attached to the bill was an amendment from Sen. Debbie Stabenow (D-MI) that would repeal Sec. 9006 of the Patient Protection and Affordable Care Act, the part of that act which institutes new 1099 reporting requirements.
The new requirements are slated to go into effect after this year. They would require Form 1099 be filed for all payments of $600 or more to corporations. This new rule has been heavily criticized, with opponents claiming it will stymie business growth and place an unreasonable paperwork burden on small businesses.
It is reasonable to think the bill will pass the House, especially since Republican disapproval of the 1099 requirement changes has been pronounced. What President Obama will do if and when the bill comes to his desk is uncertain.
For more information on this and other tax law issues, contact the Illinois tax attorneys at Horowitz & Weinstein.