The Senate on Monday night failed to repeal the stricter 1099 reporting requirements that are looming for businesses. Starting in 2012, businesses will have to issue 1099s to anyone and any company that they purchase more than $600 of ANYTHING from — including purchases of goods, supplies, inventory, etc. This is a major change from current law, which only requires 1099s to be issued to independent contractors and others who provide services to the business (such as accountants or lawyers). This change was quietly tucked away in the “health care reform bill” passed earlier this year.
There has been a large amount of backlash from the business community (and rightfully so) about these new requirements. But on Monday night, the Senate twice voted down attempts to repeal the 1099 changes. What’s odd is, both Republicans and Democrats say they understand the burden this will place on businesses, and both Republicans and Democrats seem to want to do away with the changes. But yet, they can’t reach a compromise on the issue. You can read more in this New York Times article.