Thursday, March 3, 2011

House of Representatives Approves SEMA-Supported Legislation to Repeal 1099 Reporting

SEMA eNews Vol. 14, No. 9 House of Representatives Approves SEMA-Supported Legislation to Repeal 1099 Reporting Requirementin Breaking NewsGovernment Affairs

After months of debate, the U.S. House of Representatives has approved legislation removing the costly 1099 reporting requirement from the health care law passed last year.

After months of debate, the U.S. House of Representatives has approved legislation removing the costly 1099 reporting requirement from the health care law passed last year. H.R. 4, the “Small Business Paperwork Mandate Elimination Act,” was adopted after SEMA and other small business organizations advocated strongly on behalf of the provision. The legislation will now be sent to the Senate for action.

Under this legislation, businesses will no longer be required to issue 1099 forms to all vendors from whom they buy more than $600 worth of goods or services in any year, beginning in 2012. The provision has garnered widespread opposition on Capitol Hill, and President Obama called for its repeal during his State of the Union address. The requirement was intended to prompt vendors receiving 1099 forms to declare and pay taxes on the income. SEMA was a leader among small business organizations in supporting the repeal and was invited to participate in a press conference with the bill’s original sponsor, Rep. Dan Lungren (R-CA) urging support for the legislation.

SEMA will continue to urge support of the 1099 requirement repeal in the United States Senate. For more information, contact Dan Sadowski, Congressional Affairs Manager, at 202/783-6007, ext. 19, or e-mail dans@sema.org.

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