PIA Praises Senate Vote to Repeal Expanded 1099 Requirement;
President Obama Expected to Sign Repeal
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.
On March 31, 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).