US SENATE PASSES COMMON SENSE SOLUTION FOR BUSINESS OWNERS February 4, 2011Posted by Roger Rickard in Advocacy.
Tags: 1099, business, Congress, FAA, Senate
SENATE PASSES 1099 REPEAL AMENDMENT IN FAA BILL: The Senate on February 2 adopted an amendment to legislation reauthorizing the Federal Aviation Administration (FAA) repealing the new Form 1099 reporting requirements enacted as part of the health care law.
The amendment, sponsored by Sen. Debbie Stabenow (D-MI), completely repeals the expanded 1099 reporting requirement in the new health care law and pays for the repeal with unspent appropriated funds, or already appropriated money from various federal agencies, as directed by the Office of Management and Budget. The amendment passed 81-17 with unanimous Republican support and 34 Democrats voting in favor. The bipartisan nature of the vote was in stark contrast to the amendment that would have repealed the entire health care bill, offered by Senate Minority Leader Mitch McConnell (R-KY), which failed on a party-line vote.
“Today we provided a common-sense solution for business owners so they can focus on creating jobs, not filling out paperwork for the IRS,” Stabenow said after the vote. “Since last year, I have worked with my colleagues on both sides of the aisle to address this problem. If left unchecked, 40 million small businesses would see their IRS 1099 paperwork increase 2,000 percent.”
Work on the overall FAA bill is expected to continue into next week. Because revenue measures must originate in the House, the fate of the amendment is unknown. House Republicans have made 1099 repeal one of their top priorities, but it is unknown if the Stabenow “pay-for” is acceptable to the majority or if the Republican vehicle for passage could also pass the Senate.