U.S. Rep. Johnson Signs Discharge Petition to Get Small Business Relief

Press Release

U.S. Rep. Timothy V. Johnson today signed the discharge petition to repeal the form 1099 tax reporting requirement in the health care overhaul legislation.

Section 9006 of the Patient Protection and Affordable Care Act will require business owners to submit separate 1099 reporting forms for every single business transaction that exceeds $600 a year.

"This is an overwhelming and unforeseen burden that will literally tax each and every business, threatening their very existence at a time when many are already on the fence financially," Rep. Johnson said. "This needs to be revisited. It needs to be repealed. I frankly think many of my colleagues failed to understand the implications of this and many other provisions of this ill-conceived health care legislation when it was rammed through Congress before we even had a chance to read it."

The health care law vastly expands the reporting requirement by extending it to corporate vendors and by mandating reporting for goods and gross revenues. This means business owners will have to provide 1099 forms for basic business expenses, including phone and internet service, shipping costs and office supplies.

The discharge petition, initiated by U.S. Rep. Dan Lundgren, could force a floor vote on the question if enough signatures are gathered.

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