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Bright Supports Legislation To Remove Small Business Reporting Requirements

Press Release

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Date:
Location: Washington, DC

Today, Congressman Bright voted for legislation to remove burdensome tax reporting requirements for small businesses. The Small Business Tax Relief Act will remove Section 9006 of the new health care law (H.R. 3590), which requires business owners to submit a separate 1099 IRS form for each business-to-business transaction totaling over $600 in a given year. Previously, businesses needed to report only services performed by non-corporate entities, usually independent contractors. H.R. 5982 is very similar to the Small Business Paperwork Mandate Elimination Act, which Congressman Bright co-sponsored just last week. The legislation failed 241-154 because it did not receive the necessary 2/3 votes needed to pass.

"There are many flaws to the health care law, but some of the worst are the additional burdens on small businesses," Bright said. "The legislation considered today removes unnecessary paperwork requirements for businesses, preventing new financial obligations from taking effect during economic hard times. This is a good step to reform some of the problems of the new health care law. Unforunately, this legislation fell short of the 2/3 vote needed to pass it on the suspension calendar. However, we should work together to support legislation that will make necessary changes to the health care law to remove the burdens on our job creators."

The reporting requirement is particularly hurtful for small businesses. Not only are they faced with an onerous tax reporting burden, it could also change with whom they decide to do business. It will be much more difficult for small businesses to purchase goods and services from smaller companies if they have to fill out an additional 1099 form for each individual vendor. Many would choose to rely on a single large supplier than to negotiate with a number of small companies. Additionally, smaller companies often do not have a staff large enough to handle additional paperwork requirements.


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