Small businesses would be spared having to file hundreds of new IRS form 1099 reports every year under a bipartisan bill supported by Republican Conference Secretary John Carter (TX31) that passed the House of Representatives today. H.R. 4, the Small Business Paperwork Mandate Elimination Act of 2011, was approved by a wide 314-112 margin.
"This is one of the promises we made to voters before last November's election, and I am proud to be part of making sure this Congress does exactly what it said it would do," says Carter. "These 1099 mandates would be a nightmare for small businesses and property owners. These are prime examples of all the very bad things that were hidden last year in 2,000 page bills that no one was allowed to read. This victory today is certainly a win against very bad regulations, but it is also a win for cleaning up the way this House operates."
The IRS form 1099 mandate, passed as part of the healthcare reform bill in the last Congress, would have required businesses to issue a Form 1099 for any payments over a combined total of $600 in a calendar year to other companies for property. The mandate would have required many small businesses to file 1099's for office and cleaning supplies and many other small incidental purchases throughout the calendar year. The pending 1099 mandate was also expanded in last year's small business lending law reforms. That expansion would have required owners of rental property to file 1099's on combined payments to one recipient over $600 in a calendar year.
The American Farm Bureau, U.S. Chamber of Commerce, National Federation of Independent Business (NFIB), National Taxpayers Union, and many other nationally prominent groups supported the measure. H.R. 4 reduces federal spending by nearly $20 billion over the next 10 years, and reduces the federal deficit by $166 million over that same time.