Well according to the latest Congress vote IT IS! Seems all the fussing and crying by ordinary business people and those who fight on our behalf truly paid off. The 1099 Repeal Passed Congress and the House and President Obama is expected to sign the repeal soon. According to a recent article posted by Dan Danner
"Had this regulatory burden survived, you would have been saddled with one of the worst mandates ever to come out of Washington. It would have robbed you and your fellow entrepreneurs of countless hours that you must have to manage and grow your business. It would have forced you to become an arm of the Internal Revenue Service, collecting information on your vendors and handing over reams of needless paperwork to federal bureaucrats who would have made your lives even worse with petty challenges…not to mention feeding your company’s information into the government’s bottomless data collection system from which additional problems could be raised years from now."
Seems now we don't have this headache to worry about. But the question still remains if government still truly understands or "gets" the issues of small business and if they don't, what other burdensome regulations are around the bend? I don't know, but what I do know is that I can tell my clients that for now, 1099-Misc only go out to non incorporated entities that you've paid $600 or more. :-)
Katrina M. Harrell
CEO & Founder, Your Simple Bookkeeper