Repeal of Form 1099 Reporting Requirements Gains Momentum - Action Still Needed

The massive healthcare bill enacted in March contained a provision which requires businesses to send Form 1099s for all business-to-business transactions for services and goods equaling $600 or more in a year.  The provision was justified as a way to 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 offset a small portion of  the healthcare bill,  but AGC members know it will be a tremendous burden on businesses and increase paperwork and compliance costs. Legislation has been introduced in both the House and Senate to modify and repeal the 1099 requirement. AGC supports full 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  The House considered legislation prior to the August recess that would have repealed the provision; however, the bill ultimately failed.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 two amendments to a small business jobs bill when they return in September: one that would repeal the provision and one to modify the provision. Because the proposed modification would not repeal the 1099 requirement, but would instead put in place new exemptions, AGC does not believe the amendment would provide adequate relief for business. AGC continues to request 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 the AGC Legislative Action Center.