The House Small Business Committee has held its first hearing in the 112th session of Congress on the 1099 reporting mandate of the new health care law. The reporting mandate would require small businesses to file a 1099 form with the IRS for every vendor they pay more than $600 per year.
Sam Graves, R-Mo., House Small Business Committee chairman, who led the hearing, said, “This new 1099 requirement will cause an avalanche of additional 1099 forms to be filed and affect more than 36 million entities. At a time when we should be making it easier to create jobs, promote growth and invest in our economy, small firms don’t need yet another costly and burdensome mandate.”
During his testimony, Rep. Dan Lungren, R-Calif., said, “I would suggest to the committee that Section 9006 conveys the worst possible message to the small business community. It reflects a disconnect with the day-to-day reality faced by the men and women involved with companies in each and every one of our districts. As one small businessman recently related to me, ‘This is what you would expect from someone who has never laid awake at night worrying about making a payroll.’ He’s right, and we shouldn’t be adding to the worries of those who run small business enterprises.”
To find out more about the committee hearing, visit ASA’s legislative website.