Rep. Manzullo Votes to Repeal Job-Killing IRS Reporting Provision in New Health Care Law
Press Release
Congressman Don Manzullo (R-Egan) voted today to repeal a burdensome reporting provision in the new health care law that would require businesses, local governments and non-profit agencies to file an IRS 1099 form each time they spend more than $600 on goods or services starting in 2012.
The House approved the Small Business Paperwork Mandate Elimination Act of 2011 (H.R. 4) by a vote of 314-112. A similar 1099 repeal provision unanimously passed the Senate on February 2 as an amendment to the FAA Air Transportation Modernization and Safety Improvement Act (S. 223). The bills now await reconciliation between both the House and the Senate before they can be sent to the President for his signature.
Manzullo, former Chairman of the House Small Business Committee, said the new mandate would be a reporting nightmare for America's small employers who would have to focus their attention on complying with the new tax laws instead of expanding their businesses and creating jobs. Furthermore, the new mandate would prompt more companies to do business with larger subcontractors instead of several smaller subcontractors so they don't have to file as many 1099 forms. Historically, small businesses have created about 75 percent of all the net new jobs each year.
In addition, the bill approved today repeals a separate law enacted last year that extended the burdensome 1099 reporting provision to anyone who receives rental income. This specific1099 mandate on rental property owners is currently in effect. Thus, a landlord is required to file a 1099 form with the IRS every time he or she spends more than $600 on a good or service.
"At a time when we should be doing everything we can to help our small employers put Americans back to work, this burdensome reporting requirement does just the opposite. It forces our employers to spend their precious time and resources on filling out tax paperwork instead of expanding their businesses and creating jobs," Manzullo said. "This was just another one of the onerous mandates in the new health care law that makes no sense and must be repealed before further damage is done to our economy."
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