Congressman Leonard Lance (NJ-07) today issued a statement following U.S. Senate passage of H.R. 4, the Small Business Paperwork Mandate Elimination Act of 2011:
"I have long called for the repeal of the 1099 provision because I believe it is a tax increase and huge regulatory burden on New Jersey's businesses, particularly small ones," Lance said. "Without congressional action these new requirements impose a huge tax compliance burden on small businesses and individuals alike, forcing them to devote even more resources to the tax preparation process and away from reinvestment and job creation. I am pleased the U.S. Senate acted in a bipartisan capacity and urge President Obama to swiftly sign this measure into law."
BACKGROUND: H.R. 4 would eliminate two separate 1099 reporting requirements. The first one, which has been well publicized, was passed as part of last year's healthcare law and would require companies and other entities to file 1099 reports to the IRS for all goods and services transactions valued at more than $600. The second was approved last year as part of the Small Business Lending Act, and imposes similar requirements on property owners. Lance opposed both bills enacting the 1099 reporting requirements. H.R. 4 passed the U.S. House in early March by a vote of 314 to 112.
"We must continue to work in a bipartisan basis toward common-sense solutions that will help our Nation's small businesses keep more of what they earn to hire workers, buy new equipment and expand their companies," Lance concluded.