President Obama signed into law Thursday H.R. 4, the Small Business Paperwork Elimination Act, which repeals the 1099 tax-reporting requirement established in the health care overhaul law that passed last year.
"Today, I was pleased to take another step to relieve unnecessary burdens on small businesses by signing H.R. 4 into law," Obama said in a statement. "Small business owners are the engine of our economy, and because Democrats and Republicans worked together we can ensure they spend their time and resources creating jobs and growing their business, not filling out more paperwork."
The 1099 provision would have required businesses to send a 1099 tax form and collect W-9 information from every vendor it purchases more than $600 worth of goods or services from each year.
According to the Small Business Administration, 97.4 percent of boatbuilders are considered small businesses and 94.8 percent of boat dealers have annual receipts of less than $10 million.