Reprinted from SEMA News……
As Congress continues the lengthy debate to repeal the costly 1099 reporting requirement included in last year’s health care law, SEMA is again pushing for immediate action. SEMA President and CEO Christopher Kersting sent a letter to the House Ways and Means Committee requesting immediate consideration of proposed repeal legislation. The Committee has since approved a repeal bill (HR 4) and a funding mechanism (HR 748), sending the important bill to the House floor for a vote. The Senate has already approved a repeal measure.
Unless the law is repealed, businesses will be required to issue 1099 forms to all vendors from whom they buy more than $600 worth of goods or services in any year, beginning in 2012. The provision has garnered widespread opposition on Capitol Hill, and President Obama called for its repeal during his State of the Union address. The only obstacle to eliminating the provision has been finding an offset to recoup lost revenues. The requirement was intended to prompt vendors receiving 1099 forms to declare and pay taxes on the income. SEMA contends that it will fail to collect much under-reported income, but it will succeed in punishing small-business taxpayers that already comply with U.S. tax law.
SEMA is working independently and with four other industry coalitions to repeal the 1099 provision. For more information, please visit www.semapac.com or contact Dan Sadowski, congressional affairs manager, at dans@sema.org.