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PIA Praises Senate Vote to Repeal Expanded 1099 Requirement

WASHINGTON, April 5, 2011 - The National Association of Professional Insurance Agents (PIA) praised today's bipartisan vote in the Senate to repeal a...
April 5, 2011

President Obama Expected to Sign Repeal

WASHINGTON, April 5, 2011  - The National Association of Professional Insurance Agents (PIA) praised today's bipartisan vote in the Senate to repeal a burdensome tax reporting requirement. The Senate voted  87-12 to repeal the 1099 tax-reporting provision of the healthcare law.

"The Senate's vote to repeal the expanded 1099 requirement represents a victory for America's businesses, especially small businesses, which would have been adversely affected by an overwhelming, onerous reporting and paperwork burden," said PIA National Director of Federal Affairs Mike Becker. "This action removes the uncertainty that had served as one impediment to rebuilding our economy."

"The bipartisan support that this repeal received provides further validation of the crucial role that small businesses play," Becker said. "America's PIA Main Street insurance agents are grateful that Congress has provided a vote of confidence in our nation's business community."

The 1099 provision, set to take effect in 2012, is part of the Patient Protection and Affordable Care Act (PPACA), passed in 2010. The provision would have required businesses to file 1099 forms with the Internal Revenue Service any time they spend more than $600 a year with any other business. That requirement was a significant expansion of the current 1099 reporting requirement, which currently applies only to payments to unincorporated service providers.

The expanded 1099 requirement was projected to raise nearly $25 billion over the next decade by ensuring that vendors pay their taxes. Now, the money will be made up by changing another part of the health care law, requiring more families to repay tax credits designed to help them cover insurance premiums, if their incomes increase beyond certain levels.

The repeal bill now goes to President Obama, who is expected to sign it.

Last week, PIA members visited Capitol Hill and lobbied their members of Congress during the annual PIA legislative summit, supported by a nationwide online grassroots effort, all urging final repeal of the 1099 provision. A broad coalition of groups also advocated repeal, including the National Federation of Independent Business (NFIB).

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.

 

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