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Member, Beacon International Group, Ltd.
WASHINGTON—Senate Majority Leader Harry Reid, D-Nev., and Senate Finance Committee Chairman Max Baucus, D-Mont., on Tuesday introduced legislation to repeal a provision in the health care reform law that will require employers to furnish 1099 tax reporting statements whenever they do more than $600 in business with a corporate vendor.
Small employers have complained that the reporting burden of the new requirement, scheduled to go into effect in 2012, is too great. Sen. Baucus said in a statement that he has “heard small business loud and clear, and I responding to their concerns.”
Last year, Sen. Baucus proposed—as an amendment to a food safety bill—to repeal the Form 1099 reporting requirement. But he failed to win enough votes to attach the amendment to the broader bill, which later passed.
Business lobbyists previously said the only reason the 1099 repeal measure failed to win approval during the prior congressional session is that GOP leaders wanted to get full credit this session when they control the House.
President Barack Obama has said he would consider changes to the 1099 reporting requirement.