1099 Repeal? Not So Fast
Don’t recycle that stack of 1099 forms you’ve been hoarding just yet. The recent proposal to eliminate the 1099 rule, which will require you to report virtually all payments to vendors that exceed $600 beginning in 2012, swung and missed from both sides of the plate this week. U. S. Senators Max Baucus, a Democrat from Montana, and Mike Johanns, a Republican from Nebraska, each introduced measures to get rid of the rule. Neither garnered the votes needed to pass. The apparent roadblock? That small matter of $19 billion in lost revenue and what to do about it.