The American Horse Council reports that on Monday, April 5, 2011, the U.S. Senate passed a repeal of the new 1099 reporting requirement. The House approved the same 1099 repeal bill (H.R 4), introduced by Congressman Lungren (R-CA), earlier this year. The President is expected to sign the bill into law in the next several days. This will head off an increase in tax related paper work for horse businesses in 2012.
The 1099 paperwork mandate was a provision of the health care bill passed last year that would have imposed burdensome new tax reporting requirements on every business in the U.S., including those in the horse industry, beginning in 2012.
So, if you now need to generate your own 1099 paperwork, check stubs or W-2 form, take a look on Paystubs Now.
The bill repeals only the new broader reporting requirements. Businesses will still have to send 1099s to independent contractors as current law requires.
The AHC supported repeal of the new 1099 reporting requirement.
Background
The Patient Protection and Affordable Care Act (“Health Care Bill”) that was signed into law last year included a provision broadly-expanding 1099 IRS form reporting requirements starting in 2012. Current law requires 1099s to be sent to any independent contractor that receives $600 or more from a business in a year. The new provision would have required, starting in 2012, that 1099s be sent not only to independent contractors but also to any individual or corporation from whom a business purchased a total of $600 or more in goods or services in any given year.
Repeal of the new 1099 requirement has had Presidential and bipartisan Congressional support once its full impact on businesses was realized.
Learn more at the American Horse Council!
******************
Go horse shopping this weekend! Visit equiery.com for new classifieds!
