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Democrats Back GOP Bill to Repeal 1099 Provision

Agents and brokers are hoping Congress is ready to take action to eliminate a tax-reporting requirement used to offset some future costs of healthcare reform....
February 1, 2011

Agents and brokers are hoping Congress is ready to take action to eliminate a tax-reporting requirement used to offset some future costs of healthcare reform. Three Senate Democrats pledged their support for a repeal of Section 9006 of the Patient Protection and Affordable Care Act (PPACA) in a letter to Speaker of the House John Boehner. Should the House of Representatives pass H.R. 144, the Small Business Paperwork Mandate Elimination Act, "we are confident that the Senate can quickly act," Sens. Maria Cantwell (D-Wash.), Amy Klobuchar (D-Minn.) and Ben Nelson (D-Neb.) wrote. In his State of the Union speech, President Obama indicated he supports repeal of the 1099 provision.

Beginning in 2012, all businesses, nonprofit entities and governments will have to file a 1099 form with the Internal Revenue Service reporting any purchases of goods or services of $600 or more in a tax year. Under current law, the 1099 requirement only applies to services when the vendor is an unincorporated person or business. Agents, brokers and other small businesspeople have called for repeal.

"This expanded 1099 provision will impose a substantial burden on small businesses, which are the economic engines that power our economy," PIA National President Fred Thomas said in a statement to BestWire.

Click here to read Dems Back GOP 1099 Repeal Bill (BestWire 1/25/2011)

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