Support Repeal of New Form 1099 Reporting Requirement
A provision in the massive healthcare bill enacted in March requires businesses to send Form 1099s for all business-to-business transactions equaling $600 or more in a year. The new requirement will be a tremendous burden on businesses increasing their paperwork and compliance costs. AGC of America supports legislation to repeal this requirement and needs your help – contact your Members of Congress through the AGC Legislative Action Center.
The provision was passed to help identify businesses that are not reporting or underreporting income to avoid paying their fair share of taxes. The Congressional Budget Office estimated that the provision would raise $17 billion to help pay for the healthcare bill. Legislation has been introduced in both the House and Senate to modify and repeal the 1099 requirement.
AGC supports repeal of the provision rather than a modification which is why AGC supports H.R. 5141 and S. 3578 the Small Business Paperwork Mandate Elimination Act. The House considered legislation prior to the August recess that would have repealed the provision; however the bill ultimately failed. The Senate is scheduled to vote on an amendment to a small business jobs bill that would repeal the provision when they return in September.
AGC is requesting members write their Senators and Representative in support of H.R. 5141 and S. 3578 and in support of a full repeal of the burdensome 1099 reporting requirement. For more information on the 1099 reporting requirement and to write your Members of Congress use AGC Legislative Action Center. The only members of the WA State Congressional Delegation that are currently cosponsors of the repeal legislation are Reps. Dave Reichert (8th) and Cathy McMorris-Rodgers (5th).