The National Association of Manufacturers this afternoon sent a “Key Vote” letter (copy here) to the House of Representatives in support of H.R. 4, Small Business Paperwork Mandate Elimination Act of 2011. Excerpt:
H.R. 4 would repeal language in the 2010 Patient Protection and Affordable Care Act (P.L. 111-148) requiring businesses to file an Internal Revenue Service (IRS) form 1099 for all purchases of property and services in excess of $600. Previously, businesses were required to report only purchases of service and only from non-corporate entities. The new language essentially requires 1099 reporting for all transactions in excess of $600.
This reporting requirement is extremely onerous — especially for small manufacturers. The NAM supports efforts to ensure tax compliance, but not at the expense of manufacturers that are following the law.
How did this reporting requirement get passed in the first place? It’s almost as if the drive to pass a health care law overran common sense.
A committee of representative NAM member companies — half large, half small — determines which issues qualify as key votes. Results of the key votes are tallied to determine a member of Congress’ record on manufacturing issues.
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