Sen. Franken Supports Successful Repeal of Onerous 1099 Tax Reporting Rule That Threatened to Saddle Minnesota Businesses with Excessive Paperwork

Press Release

U.S. Sen. Al Franken (D-Minn.) today voted to successfully repeal the "1099" tax-reporting requirement that threatened to saddle millions of businesses in Minnesota and across the country with excessive paperwork.

"Since last summer, I have worked with businesses across our state, and a great many of my colleagues to eliminate the burdensome 1099 reporting rules because they require far too much time and paperwork for our businesses and their employees." said Sen. Franken. "From main street grocers, to high tech medical device companies and local chambers across Minnesota, I have heard how this requirement would sap time and productivity from their operations and hurt their ability to expand and create jobs. Eliminating it is the right thing to do."

In January, Sen. Franken cosponsored legislation to repeal the 1099 provision, which, starting in 2012, would have required business owners to file a tax reporting document for all vendors from which they buy $600 worth of goods or services within a year. Tuesday's vote was the third time Sen. Franken voted to repeal the requirement. He also wrote to the IRS Commissioner last year with concerns about it.

President Obama and the House of Representatives also support the 1099 repeal, which is expected to be signed into law in the coming days.

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