NRCA Action Alert: Support Form 1099 Repeal Amendment in Senate
On Tuesday, April 5, the Senate could vote to swiftly repeal the new Form 1099 requirement
authorized by Congress in 2010 as part of the health care law. NRCA strongly supports
1099 repeal legislation and urges all members to contact their senators and urge
them to vote for a 1099 repeal amendment by Sen. Mike Johanns (R-Neb.) tomorrow.
The new health care law contains a massive expansion of Form 1099 reporting that
will create a severe tax compliance and paperwork burden for small businesses. Beginning
in 2012, the law requires businesses to send a Form 1099 for every business-to-business
transaction of $600 or more for property and services. This means a small business
will have to file two forms (one with the vendor, one with the Internal Revenue
Service) for almost every business-to-business transaction and track down the Taxpayer
Identification Numbers for every vendor. Small businesses lack the capability to
track this information, and resources spent to comply will be diverted from efforts
to grow businesses and create jobs.
The House recently passed H.R. 4, legislation to fully repeal the 1099 requirement,
with a strong bipartisan vote. On April 5, the Senate will vote on an amendment
by Johanns that is identical to H.R. 4. If the Johanns amendment receives 60 votes,
it will be sent directly to President Obama to be signed into law. However, the
Senate also will vote on an amendment by Sen. Robert Menendez (D-N.J.) that requires
further study of this issue and will delay 1099 repeal.
To ensure 1099 repeal without further delay, NRCA has urged senators to vote for
the Johanns amendment and against the Menendez amendment. Now we need your help
to let your senators know they must act now to repeal the onerous 1099 requirement.
Contact your senators and urge them to support the Johanns amendment because:
Passage of the Johanns amendment is the only way to ensure timely repeal
of the onerous 1099 reporting provision.
Repeal of the 1099 requirement is needed immediately because businesses already
are spending scarce resources needed to ensure compliance in 2012.
The sooner the 1099 requirement is repealed, the sooner small employers can start
growing their business and creating new jobs.
If you prefer to call your senator's office, you may do so by calling the U.S. Capitol
Switchboard at (202) 224-3121, asking for the senator's office and telling the staff
of your "strong support for the Johanns 1099 repeal amendment." You may wish to
use the bullet points in your conversation with the lawmaker's staff.
If you have questions or need more information, please contact Duane Musser in NRCA's
Washington, D.C., office at (202) 546-7584 or firstname.lastname@example.org.
All 47 Republican senators have publicly indicated they will support the Johanns
amendment, so it is necessary that at least 13 Democratic senators support it to
reach the 60-vote threshold needed for passage. Below is a target list of states
with Democratic senators who should receive the most calls and e-mails in support
of the Johanns amendment.