President Obama signed legislation into law repealing a mandate which required small businesses to file 1099 forms with all vendors paid more than a sum of $600 for goods and services in a calendar year. The law will take effect in 2012. Congress had approved the repeal earlier this month.
Small business owners, including many automotive groups are relieved considering they saw the 1099 as an unnecessary burden on small businesses who already complied with tax laws.
The law is designed to encourage small business owners to keep persevering through this tough economy, focus on job creation and create sustainable business strategies rather than focus on tedious paperwork. Small businesses play a vital role in the American economy, and this measure simply acknowledges that.
