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."

Continue Reading for Free

Register and gain access to:

  • Breaking credit union news and analysis, on-site and via our newsletters and custom alerts.
  • Weekly Shared Accounts podcast featuring exclusive interviews with industry leaders.
  • Educational webcasts, white papers, and ebooks from industry thought leaders.
  • Critical coverage of the commercial real estate and financial advisory markets on our other ALM sites, GlobeSt.com and ThinkAdvisor.com.
NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.