A potentially burdensome new recordkeeping requirement facing farmers, ranchers and other small business owners was repealed last week when President Obama signed legislation H.R. 4, which ends the “1099 requirement” included in the federal health-reform package.

H.R. 4, known as the Comprehensive 1099 Taxpayer Protection and Repayment of Exchange Subsidy Overpayments Act of 2011, repeals a requirement that small business owners, farms, and ranches file an Internal Revenue Service Form 1099 for all payments, including goods and as well as services, totaling $600 or more in a calendar year for each vendor.

The government planned to tax revenues reported on 1099 forms in order to raise money to fund health care reform. PD

—From WUD Weekly Update