Hoeven: Congress Passes Final Measure to Repeal 1099 Reporting Requirement for Businesses
Action Helps To Create Better Climate for Jobs Creation
WASHINGTON, D.C. – Senator John Hoeven today said the U.S. Senate has reconciled and passed separate U.S. Senate and House bills designed to eliminate the burdensome 1099 reporting requirement in last year’s health care law, now clearing the way for the President’s signature. Hoeven is a cosponsor of the Senate measure, which passed the chamber in February.
“America’s 17 million small businesses have created the vast majority of jobs in America over the past 15 years, and passage of this measure removes a major expense and bureaucratic burden that will enable them to continue to do that,” Hoeven said. “At a time when our nation is in urgent need of job creation, we must make sure that American businesses have a tax and regulatory climate that promotes economic vitality and hiring.”
Specifically, the legislation passed today repeals a provision requiring that every business, church and charity submit a 1099 tax form for business transactions totaling $600 or more in a given year. This mandate adds routine business expenses like phone, office products, and shipping costs, and increases businesses’ reporting requirements by as much as 2,000 percent. The bill also eliminates a similar 1099 reporting requirement placed on owners of certain rental properties.
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