Begich Joins Senate in Repeal of 1099 Provision of Health Care LawPaperwork burden seen as hardship on small businesses
U.S. Sen. Mark Begich today joined a majority of his colleagues in the Senate in voting to repeal a burdensome recordkeeping requirement for small businesses. Commonly called the "1099 provision" the regulation, passed as part of health reform, would require small business owners for file an IRS form 1099 each time they make a purchase of $600 or more from a vendor.
Begich has been working since last summer to repeal the 1099, first writing to the IRS in July asking that the paperwork requirements be reduced; then in September, Begich sponsored an amendment to repeal the item from the health legislation.
"This is great news for Alaska's small businesses and businesses across the country as we move forward on getting rid of this unnecessary paperwork burden," Begich said. "Small businesses need to focus on job creation and expansion, and this is a hardship they just don't need."
The 1099 repeal was approved by a vote of 81-17 as an amendment to the FAA Reauthorization bill currently being considered by the Senate.
Existing law applies Form 1099 reporting requirements to the value of purchased services, but the new health care law expands the requirement to goods purchased. If repeal isn't ultimately approved, in 2012 the law would expand business tax reporting requirements for annual purchases valued at $600 or more.
Small business owners across Alaska encouraged Sen. Begich to work to repeal the 1099 provision.
Posted: February 3, 2011
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