Bill to Repeal Health Care Law’s 1099 Paperwork Mandate Filed

Posted on August 3, 2010 by admin
Bill to Repeal Health Care Law’s 1099 Paperwork Mandate Filed
Sen. Mike Johanns of Nebraska has introduced S. 3578 that would repeal a costly tax reporting provision included in the new health care law. The provision forces all businesses, charities, and state and local governments to file 1099 forms if they purchase $600 or more in goods from another business throughout the year. This includes everything from supplies and shipping costs to phone and internet services. Senator Johanns’ bill, the Small Business Paperwork Mandate Elimination Act, would repeal this provision and prevent a massive new paperwork requirement from being imposed on businesses, which could increase 1099 filings by 2000 percent.

 “This mandate forces businesses to waste staff time and resources on paperwork that even the IRS says will likely be of little value,” Johanns said. “One more mandate that stifles small businesses at the same time that Washington urges them to hire workers. For businesses already struggling to emerge from a recession this would be particularly burdensome, requiring government paperwork for common, everyday purchases. It is nothing more than a government-imposed obstacle to economic growth and job creation.

Additionally, a division of the IRS has already stated the agency will ‘face significant challenges’ in handling the mountain of 1099 reports that will result from this new requirement, and has predicted an increase in erroneous penalties on our citizens. This provision has nothing to do with health care, and I hope my colleagues will support its repeal to protect small businesses across the country.”

Source: Press Rlease from Sen. Johanns
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