WASHINGTON, D.C. – U.S. Senator Roger Wicker (R-Miss.) today voted to repeal the burdensome 1099 tax reporting mandate that was included in the President’s massive health care law. The Senate approved the repeal, H.R. 4, by a vote of 87-12.
“The 1099 tax requirement in the President’s health care law would have been devastating for small businesses and entrepreneurs in Mississippi,” said Wicker. “Every company, nonprofit, church, and local and state government entity would have been required to submit an IRS 1099 form when goods purchased from another business exceed $600 in a year. At a time when many small businesses continue to struggle, the 1099 provision in the President’s health care law further hampered their ability to grow and create jobs. This is an important step toward overturning the worst parts of the law before they can be implemented.”
Forty million businesses across the country would have been impacted by the reporting mandate, according to the IRS’s National Taxpayer Advocate. In the State of the Union address earlier this year, President Obama called the 1099 mandate “an unnecessary bookkeeping burden on small businesses” and agreed to its repeal.
H.R. 4 also repeals another 1099 mandate that requires individuals receiving rental income to report payments to vendors in excess of $600 per year related to the rental property. This provision was included in last September’s Small Business Jobs Act.
Wicker and a bi-partisan group in the Senate have supported eliminating the new 1099 reporting provision. The Senate voted on a similar repeal earlier in the year, but today’s vote sends the measure directly to the President for his signature.
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