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PIA Urges Senate to Approve Bill Repealing Burdensome 1099 Provision in Healthcare Law

WASHINGTON, Monday, November 29, 2010 - The National Association of Professional Insurance Agents (PIA) is urging the U.S. Senate to pass an amendment...
November 29, 2010

WASHINGTON, Monday, November 29, 2010  - The National Association of Professional Insurance Agents (PIA) is urging the U.S. Senate to pass an amendment that would repeal a provision of the healthcare law that imposes an onerous burden on businesses, especially small businesses.

The U.S. Senate today is tentatively set to consider two amendments, each of which would repeal a vastly expanded requirement that businesses of all sizes, as well as governments and nonprofits, file a 1099 form with the Internal Revenue Service reporting any purchases they make of goods or services of $600 or more in a tax year from any individual or business, including corporations.

A bill by Sen. Mike Johanns (R-Neb.) to repeal the requirement covers the cost by using unspent and unobligated federal money, while a version by Sen. Max Baucus (D-Mont.) would add the estimated $17-19 billion cost to the federal deficit. The bills were offered as amendments to the Food Safety Modernization Act (S. 510).

"There is broad, bipartisan support for repealing the expanded 1099 requirement because it is bad for business," said PIA National Executive Vice President & CEO Leonard C. Brevik. "This expanded 1099 provision will impose a substantial reporting and paperwork burden on small businesses, which are the economic engines that power our economy. In addition, state and local governments as well as nonprofits would see dramatically increasing costs. We applaud Sen. Johanns for offering a reasonable bill to repeal this onerous provision of the healthcare law."

The Johanns amendment directs the Office of Management and Budget (OMB) to identify $39 billion in unspent and unobligated accounts to replace the revenue that might have been generated by the 1099 paperwork mandate. The Baucus amendment lacks an offset to maintain budget neutrality.

PIA has urged its members to contact their members of Congress and urge them to support repeal of the expanded 1099 reporting provision.

Founded in 1931, PIA is a national trade association that represents member insurance agents and their employees who sell and service all kinds of insurance, but specialize in coverage of automobiles, homes and businesses. PIA members are Local Agents Serving Main Street America SM. PIA's web address is www.pianet.com.

Click here to read PIA's letter to Congressional leaders.

 

 

 

 

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