U.S. Legislators Repeal ‘Burdensome’ Reporting Requirement
Posted in News on April 06, 2011 by Elite Diams
The U.S. Senate yesterday (Tuesday) passed a bill that repeals a provision that would have required businesses to file an IRS Form 1099 for any vendor to which they pay more than $600 annually. Jewelers of America (JA), the American fine jewelry trade association, said it welcomes the repeal by Congress of the IRS 1099 reporting requirement.
The Senate passed H.R.4, “The Small Business Paperwork Mandate Elimination Act of 2011,” by a vote of 87-12. It repeals the 1099 provision enacted as part of the health care reform law. President Barack Obama is expected to sign the bill into law over the next few days.
“Jewelers of America welcomes the passage of this important legislation. We applaud those in the industry who responded to our call to action and stood up for their businesses,” says Matthew A. Runci, Jewelers of America President and CEO. “The 1099 requirement would have been another regulatory obstacle for businesses to overcome as they climb out of the downturn. Thankfully, legislators got the message.”
More than 150 businesses joined Jewelers of America in urging legislators to repeal the regulation. The filling would have included payments to corporations and purchases of tangible goods, in addition to services. “The requirement would have hurt small businesses, increasing the time and money spent during tax preparation,” JA said today.
The campaign was one of several featured at JA’s Legislative Action Center. Members and non- members can also send their own personalized messages to Congress on any topic – for example, state-level campaigns related to sales tax fairness and cadmium in children’s jewelry.