In his 2011 State of the Union Address, President Obama called for repeal of the 1099 reporting requirement included in last year’s health care legislation. SEMA has steadfastly opposed the burdensome rule that will require businesses to issue 1099 reporting forms to all vendors from whom they buy more than $600 of goods or services in any year, beginning in 2012. Last year, SEMA joined with a number of other business groups in an effort to repeal the measure. However, lawmakers were unable to agree on how to fund the lost revenues.
SEMA President Chris Kersting said, “SEMA is pleased that President Obama has responded to one of many critical issues facing small businesses by supporting the repeal of the 1099 reporting requirement. By acknowledging the need to remove this unnecessary burden on small businesses, the President has cleared the way for swift legislative action. SEMA urges Congress to act on the President’s request without delay.”
The “Small Business Paperwork Mandate Elimination Act” has been introduced in the new Congress to remove the burdensome rule. Many members of Congress have signed on as co-sponsors. SEMA will once again work toward its enactment. For more information, please contact Dan Sadowski, Congressional Affairs Manager at dans@sema.org.