Earlier this year, I posted about pending legislation in the USA that would “require businesses to file a 1099 form for every supplier with whom they spend $600 or more per year,” irrespective of whether a supplier was a sole proprietor or a corporation. I had feared that this would compel organizations to push supplier consolidation efforts past practical limits and procurement departments would be pressured to avoid buying from niche suppliers, even when there was an advantage to doing so.
Well, thankfully, intelligence prevailed in the legislative and executive branches of the US Government. Earlier this month, President Obama signed into law the “Comprehensive 1099 Taxpayer Protection and Repayment of Exchange Subsidy Overpayments Act of 2011” which repealed the onerous requirement.
Hopefully, this will take one needless distraction out of the supplier selection process. I know that I’ll sleep better at night.
To Your Career,
Charles Dominick, SPSM, SPSM2
President & Chief Procurement Officer
Next Level Purchasing, Inc.
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