After several failed attempts in the last Congress, the Senate finally voted to repeal the controversial 1099 requirement, originally passed as part of the health care reform bill.
In a bipartisan, 81-17 vote, the Senate agreed to erase the provision that would've required small businesses to file an Internal Revenue Service form 1099 for every vendor from whom they annually buy $600 worth of goods or services. The measure was originally enacted as a revenue generator, but quickly drew the ire of small business owners and advocacy associations nationwide, eventually becoming universally reviled.
The repeal came in the form of an amendment attached to the Federal Aviation Administration (FAA) Reauthorization bill.
"We provided a common-sense solution for business owners so they can focus on creating jobs, not filling out paperwork for the IRS," said Sen. Debbie Stabenow (D-MI), who proposed the successful 1099 repeal amendment. "Since last year, I have worked with my colleagues on both sides of the aisle to address this problem. If left unchecked, 40 million small businesses would see their IRS 1099 paperwork increase 2000 percent."
Stabenow's amendment was similar, indeed almost identical, to a provision originally proposed by Sen. Mike Johanns (R-NE), who was ecstatic about the repeal effort as well. "I'm thrilled that after multiple attempts to repeal this burdensome mandate, the Senate has finally done the right thing in voting to repeal it," he said. "The small business owners and organizations who stepped forward in opposition to this 1099 overreach were instrumental in sustaining the momentum that has resulted in wide bipartisan support."
While the repeal amendment garnered GOP support, the party's broader intent was full repeal of the health care law that originally instituted the 1099 requirement. The House recently voted in support of full repeal, but a similar effort failed in the Senate, although Johnanns quickly noted that the fight was far from over. "I look forward to continuing the effort to repeal the health care law and finding true solutions to our health care challenges," he added. –
From NACM E News 02/03/11
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