Three Senate Democrats OK IRS Form 1099 relief

Three Senate Democrats OK IRS Form 1099 relief

Three Senate Democrats have indicated to House Speaker John Boehner (R-Oh.) that they are willing to repeal the controversial new 1099 reporting requirement of the new health care law that dealers and other small business owners say will drown them in IRS paperwork. In a spirited letter sent Jan. 19, Sens. Ben Nelson (Neb.) Maria Cantwell (Wash.) and Amy Klobuchar (Mn.) urged the House speaker to send the Senate a stand-alone measure on the tough reporting rule, which is widely unpopular with small business and has been the target of an extensive lobbying campaign by NADA and other trade groups.

We have heard from small business men and women in our states who have voiced concern that this provision is burdensome and unnecessary and potentially a threat to our nations economic recovery, the three Senators wrote, adding we are confident that the Senate can quickly act on repealing this provision once the House passes it.

The troublesome rule requires businesses to fill out a 1099 every time they buy $600-worth of goods or services from anyone outside their company. Its meant to give the IRS a better picture of individual taxable income.

The U.S. Constitution requires that tax measures begin in the House, which means the House must act on the 1099 repeal before the Senate can take it up.

Speaker Boehner said he also supports eliminating the 1099 requirement, but that it was not the only job-destroying provision in the health care law that the House this week voted to repeal completely.

Capitol Hill watchers say the Democrat led Senate is not likely to ever take up the House action to repeal the health care law, let alone adopt it.