Small businesses will not be required to issue a Form 1099 to those they purchased more than $600 in goods or services from in a tax year.

President Barack Obama signed legislation Thursday repealing the rule, which was set to go into effect in 2012. The Internal Revenue Service said the rule would have aided in keeping track of unreported income.

The Small Business Administration's Office of Advocacy applauded the repeal, saying "the requirement would have placed an additional burden on small business at a time when they already pay 36% more than their larger counterparts to comply with federal regulations."

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