ABC - ABC Supports Repeal of Increased Form 1099 Reporting Requirements

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ABC SUPPORTS REPEAL OF INCREASED FORM 1099 REPORTING REQUIREMENTS (08/11/2010)

ABC is supporting an amendment (S. Amdt. 4519) to the Small Business Jobs Act of 2010 (H.R. 5297) that would repeal the expansion of information reporting requirements contained in the Patient Protection and Affordable Care Act (PPACA).

Under PPACA, beginning in 2012, businesses will have to file a Form 1099 to all vendors, both incorporated and unincorporated, to which they pay more than $600 annually for both goods and services. This is a shift from current law that requires a Form 1099 to be filed only for services from an unincorporated vendor for which the cost totals $600 or more.

S. Amdt. 4519, introduced the week of July 26 by Sen. Mike Johanns (R-Neb.), would repeal that requirement, saving small businesses from the costs associated with filing the extra paperwork. In a letter sent July 28 to all members of the U.S. Senate, ABC urged the passage of Sen. Johanns’ amendment.

“This new and expanded requirement means that almost every business-to-business transaction is potentially reportable to the Internal Revenue Service,” the letter pointed out. “Research from a 2005 study released by the Office of Advocacy illustrates that the small business community is disproportionately affected by burdensome federal regulations. In fact, the study concluded that complying with federal regulations costs small businesses 60 percent more than it would a company employing 500 or more employees.”

Johanns’ amendment is expected to be up for a vote on Sept. 14 when Congress is back from recess. In addition, ABC supports the Small Business Paperwork Mandate Elimination Act (H.R. /S.) which also would repeal the increased reporting requirements.

For more information, visit ABC’s dedicated page for Form 1099 reporting.

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