WASHINGTON (Feb. 2, 2011) The National Association of Mutual Insurance Companies (NAMIC) applauded today’s Senate vote to repeal a widely opposed tax filing requirement enacted as part of last year’s healthcare reform law.
“Today’s vote is the first step towards saving American small businesses from a tidal wave of needless red tape,” said Jimi Grande, senior vice president of federal and political affairs at NAMIC. “With strong support for repeal on both sides of the aisle and in the White House, we hope to stop this bureaucratic barrage before it starts.”
Under the provision, section 9006 of last year’s Patient Protection and Affordable Care Act, any business expense to a single vendor totaling more than $600 in a single year would require the filing of a separate 1099 form with the Internal Revenue Service beginning in 2012. Current law requires a filing for those expenses paid to an unincorporated entity, but the new requirement would require filings for mundane expenses such as phone or internet service and office supplies.
“Forcing businesses to file a separate 1099 form for any number of everyday business purchases would have served as a massive drain on time and resources that could be better spent creating jobs and rebuilding our economy,” Grande said. “It provides no benefit to the business or the taxpayers, and we urge the House to act quickly to help President Obama correct what he called a ‘flaw’ in the healthcare legislation.”
The repeal was approved as an amendment by Sen. Debbie Stabenow, D-Mich., who noted that the requirement would affect as many as 40 million businesses and increase 1099 filings by an estimated 2000 percent if allowed to take effect.
“Making paperwork for the IRS at the expense of American businesses is the wrong kind of job creation,” Grande said. “By repealing this onerous requirement, Congress can help American businesses get back to work.”
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Posted: Friday, February 04, 2011 8:57:39 AM.
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