On April 5, 2011, the Senate voted to pass H.R. 4 (Comprehensive 1099 Taxpayer Protection and Repayment of Exchange Subsidy Overpayments Act of 2011 ), and President Obama signed the bill into law on April 14, 2011. The law repealed IRS Notice 2010-51, hidden in “The Patient Protection and Affordable Care Act of 2010.” That’s the zinger that would have created a paperwork nightmare for small businesses by requiring them to file a 1099 form for purchases totaling or exceeding $600 from each vendor.
Thank you to everyone who contacted your Representatives in the House and then your Senators, as well as Senate Committee members regarding this tax issue. Your concerns have been heard and your voice does make a difference!