Repeal It Already: The Onerous 1099 Filing Requirement

The U.S. Senate is expected this afternoon to take up H.R. 4, the Comprehensive 1099 Taxpayer Protection and Repayment of Exchange Subsidy Overpayments Act, which is a very long title for the bill to repeal the ridiculous filing requirement included in last year’s health care bill.

The National Association of Manufacturers last week sent Senators a “Key Vote” letter urging their support for an amendment by Sen. Mike Johanns (R-NE) that mirrors H.R. 4. From the NAM letter:

The Johanns amendment would repeal expanded reporting requirements under Section 9006 of the Patient Protection and Affordable Care Act (P.L. 111-148). Section 9006 requires 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.

The House passed H.R. 4 on March 3 by a vote of 314-112. The Senate has already cast this vote, more or less, when Senators voted 81-17 in early February to pass an amendment sponsored by Sen. Debbie Stabenow (D-MI) to S. 223, the FAA reauthorization bill.

So the clear majority is there for fixing this ill-conceived, anti-small-business provision in the health care law. Let’s pass this bill and send it to the President.

UPDATE (1:14 p.m.): The bill has passed, 87-12. We’ll post the roll call vote once it’s available. (UPDATE II: And here it is.)

The bill now goes to the White House for President Obama’s signature.

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