After a year of debate, Congress has approved legislation to repeal the costly 1099 reporting requirement included in last year’s health care law. SEMA has sent a letter to the White House asking President Obama to sign the bill into law.
Under the 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 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 contended that it would fail to generate much under-reported income but would succeed in punishing businesses that already comply with U.S. tax law.
SEMA was an active leader in the effort to repeal the 1099 provision, working on its own and with a number of other small business organizations. In asking President Obama to sign the bill into law, SEMA President and CEO Chris Kersting noted that “Small businesses remain the most important economic engine driving America’s expanded recovery. Eliminating the 1099 reporting burden will allow our companies to focus on producing tangible goods and services rather than wasteful paperwork.”
For more information, please contact Dan Sadowski, Congressional Affairs Manager at firstname.lastname@example.org.