Legislation News

The Obama Administration has called for the repeal of a Form 1099 reporting requirement included in the health care reform law enacted in 2010 according to Karen Mills, administrator of the Small Business Administration. As NSAlert readers are aware, the new reporting provision will require businesses to submit Form 1099 information returns to the IRS about payments made to any single vendor that are in excess of $600 a year – for payments made January 1, 2012 or later. “The 1099 reporting requirement that was included in the law creates too big a burden for small businesses, and that’s why we called for a repeal of this requirement,” Mills said. “We are going to continue to work with Congress to make sure we get that job done,” she added.

Congress apparently wants to help. Three Democratic Senators on January 20 urged House Speaker John Boehner (R-Ohio) to pass legislation (H.R. 4) repealing the new Form 1099 reporting requirements. The text of H.R. 4 is short and to the point:

SECTION 1. SHORT TITLE

This Act may be cited as the "Small Business Paperwork Mandate Elimination Act of 2011,"

SEC. 2. REPEAL OF EXPANSION OF INFORMATION REPORTING REQUIREMENTS

Section 9006 of the Patient Protection and Affordable Care Act, and the amendments made thereby, are hereby repealed; and the Internal Revenue Code of 1986 shall be applied as if such section, and amendments, had never been enacted.