The U.S. Senate Tuesday passed legislation to repeal the new IRS Form 1099 reporting mandate enacted in last year’s healthcare bill by a vote of 87 to 12. The bill now goes to President Obama, who is expected to sign the measure.
The vote came just after the Associated General Contractors sent a Key Vote letter asking Senators to vote in support of H.R. 4, the House-passed bill to repeal the Form 1099 reporting mandate. The provision would have required all businesses to submit Form 1099s to the IRS and to any business with which it purchased $600 or more in goods or services in a year, creating a tremendous paperwork and compliance burden for businesses of all sizes. The provision would have gone into effect on January 1, 2012.
Although 1099 repeal is out of the way, AGC is still working on repeal of 3% withholding. Please go to AGC’s Legislative Action Center and urge your member of Congress to support full repeal of the 3% withholding requirement.