Will the new 1099 requirements be repealed?
Last Friday, Senate Finance Committee Chairman Max Baucus announced his intention to introduce legislation that will repeal the controversial requirements for businesses to file 1099s for the purchase of goods and certain services. Although the reporting requirements do not go into effect until January 2012, businesses need to document the transactions in 2011 in order to have the necessary records to prepare the 2011 1099s. The 2011 1099s are due January 31, 2012.
After meeting with several small business owners from Montana and other states, Senator Baucus determined that the burden imposed by the new 1099 reporting requirement is unnecessary. Small business leaders want to direct their limited resources toward expanding and improving their businesses, not compliance and paperwork.
I plan to update our blog as more information becomes available regarding repealing the new 1099 laws. Please feel free to contact me at the Las Vegas CPA firm of Wallace Neumann & Verville LLP to discuss the new 1099 reporting requirements.