1099 Mandate Repealed; 3 Percent Withholding Looms
AGC of America achieved a significant victory as the Congress passed – and the President is expected to sign – legislation to repeal the new IRS Form reporting mandate enacted in last year’s healthcare bill.
The mandate would have required businesses beginning in 2012 to report to the IRS all payments of more than $600 on 1099 forms.
The Senate passed the measure last week on an 87-12 vote. Senator Maria Cantwell voted in favor of repeal Senator Patty Murray voted against it. The bill had previously passed the House of Representatives.
Meanwhile AGC continues to urge Congress to repeal the 3 percent withholding mandate on federal state and local government contracts. Starting January 1 2012 public owners will begin withholding 3 percent of every payment to contractors for goods and services.
Stand-alone legislation has been introduced in the House and Senate to repeal this mandate. Currently H.R. 674 has 65 cosponsors in the House and two Senate bills S. 89 and S.164 have 13 cosponsors. The only members of the Washington State Congressional delegation that have cosponsored one of these bills are Reps. Rick Larsen and Cathy McMorris Rodgers.
Grassroots contact from AGC members is very important. To write your legislators and urge them to cosponsor the legislation click here.