The National Association of Mutual Insurance Companies (NAMIC) welcomed a vote by the House Ways and Means Committee today to repeal an onerous tax reporting provision included in last year’s healthcare reform law.
“The Committee’s vote today was an important first step toward rescuing small businesses across America from an avalanche of red tape, but there’s more work to be done” said Jimi Grande, senior vice president of federal and political affairs at NAMIC. “There is support for repealing this onerous provision on both sides of the aisle in both chambers and in the White House. Now is the time to get this repeal done.”
H.R. 4 would eliminate section 9006 of last year’s Patient Protection and Affordable Care Act. Under this provision, any business expense of more than $600 in a single year would require the filing of a separate 1099 form with the Internal Revenue Service beginning in 2012. Current law requires a filing for those expenses paid to an unincorporated entity, but the new requirement would require filings for mundane expenses such as phone or internet service and office supplies.
“This requirement provides no benefit to the businesses that have to file the paperwork or the taxpayers,” Grande said. “Instead, it will be a massive drain on time and resources that would be better spent elsewhere.”
The repeal bill is one of several measures that have been proposed in recent months to repeal the 1099 requirement. Introduced by Rep. Dan Lungren, R-Calif., the bill has 272 co-sponsors. With the committee’s approval, the measure will now move to the House floor.
“Already, businesses are being forced to devote significant resources to preparing for the requirement, resources that could be better spent growing their businesses or hiring new employees,” Grande said. “This repeal will help fuel the kind of job creation we need – in the private sector, rather than at the IRS. We urge Congress to pass a measure swiftly so that American businesses can get back to work.”