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In a statement today, The Independent Insurance Agents & Brokers of America (IIABA or the Big “I”) praised the U.S. House of Representatives for passing a bill to repeal the burdensome IRS form 1099 provisions that were passed into law as part of last year’s health care reform law. The bill, H.R. 4, the “Small Business Paperwork Mandate Elimination Act of 2011” by Rep. Dan Lungren (R-Calif.), passed by a vote of 314 - 112.
“The Big ‘I’ is encouraged by the passage of this important bill in the House,” says Robert Rusbuldt, Big “I” president and CEO. “If this provision is allowed to go into effect early next year, the mountain of paperwork required to comply will cost small businesses time and money, divert resources and prevent investment in job growth and business expansion at a delicate point for the American economy.”
If this provision is not repealed, all businesses will be required to file a Form 1099 for any business-to-business transaction for goods or services over $600 (cumulative throughout the tax year) starting in 2012. At the end of the tax year, businesses will have to file a Form 1099 with the IRS and send a copy to each vendor. Repeal of this burdensome mandate enjoys widespread bipartisan support in both legislative bodies, yet throughout the debate the point of contention has been how to offset the lost revenue.
“Thousands of independent insurance agents and their many small business clients may be overwhelmed if this mandate takes effect,” says Charles Symington, Big “I’ senior vice president of government affairs. “We are pleased by widespread congressional support for repeal of the 1099 reporting provision and today’s action in the House, and we look forward to working with Congress and the administration to ensure a repeal bill is passed into law.”