1099 rule stands, for now
September 15, 2010
|The Senate voted down an amendment on Tuesday to repeal the new 1099 law included in the health care bill. Starting in 2012, the new law requires businesses to file a 1099 for with the Internal Revenue Service if it purchases more than $600 worth of goods or services from a single vendor.|
Senator Mike Johanns (R-Neb.) introduced his amendment, but it was voted down as health care bill supporters claim it would have left a $19 billion hole in the overhaul.
After Johanns’ bill was defeated, Senator Bill Nelson (D-Fla.) offered his own fix, exempting small businesses with 25 or fewer employees and raising the 1099 purchase requirement from $600 to $5,000. However, in an election year with too many contended seats in both the House and Senate, it seems that politics prevailed over easing the impending burden to businesses as Nelson’s amendment was defeated too.
Rep. Daniel Lungren (R-Calif.) has introduced H.R. 5141 to the House. The Small Business Paperwork Mandate Elimination Act, which could repeal the 1099 law.
Business owners should contact their legislators and voice their opinion on the matter. Click here to find your Representative by zip code. For wording on the correspondence, visit the HMA website.