House Republicans have initiated efforts to repeal a controversial provision of federal health care reform that will require businesses to file 1099 tax forms for every vendor that sells them more than $600 worth of goods or services. The provision is due to take effect in 2013.
The Republican leadership has made the 1099 repeal a priority and has therefore assigned the initiative the number H.R. 4. The bill has more than 245 co-sponsors - nearly all House Republicans and several Democrats, including Massachusetts Representatives Barney Frank and Niki Tsongas.
The provision will subject more than 40 million entities, including governments, nonprofits, and businesses of all sizes across the nation to onerous data collection and IRS information filing burdens on virtually all non-credit card purchases.
AIM believes the 1099 provision would saddle employers with significant administrative and accounting expenses at a time when many firms are still struggling with a soft economy. We appreciate Representatives Frank and Tsongas for supporting the measure, and will ask other members of the Massachusetts Congressional delegation to join them.