Washington, DC – Today, the Committee on Ways and Means approved two separate pieces of legislation to repeal the onerous 1099 reporting provisions enacted in 2010. At the conclusion of the markup and approval of both H.R. 4, the “Small Business Paperwork Mandate Elimination Act of 2011,” and H.R. 705, the “Comprehensive 1099 Taxpayer Protection and Repayment of Exchange Subsidy Overpayments Act of 2011,” Chairman Camp made the following statement:
“The legislation approved by the Committee today is a victory for America’s small businesses, families and individuals. Congress should make every effort to reduce the heavy burden of paperwork that takes time, energy and resources away from creating jobs. Families and individuals who do something as common as rent out a room and either replace an appliance at their rental property or pay a lawn service should not have to worry about the added headache of reporting that transaction to the IRS.
“We took a fiscally responsible path to achieve this relief by reducing waste, fraud and abuse from the Democrats’ health care law, which also allowed us to reduce the deficit. I look forward to consideration of this legislation by the House very soon so that all those affected by the uncertainty of these provisions can breathe a long-awaited sigh of relief.”
Background and Key Facts:
- H.R. 4, the “Small Business Paperwork Mandate Elimination Act of 2011,” repeals the onerous new Form 1099 information reporting requirements that were imposed on small businesses to help pay for the Democrats’ trillion dollar health care law.
- H.R. 705, the “Comprehensive 1099 Taxpayer Protection and Repayment of Exchange Subsidy Overpayments Act of 2011”:
- Repeals the onerous new Form 1099 information reporting requirements that were imposed on small businesses to pay for the Democrats’ health care law;
- Repeals an additional Form 1099 information reporting requirement on owners of rental real estate; and
- Reduces improper overpayments of Exchange subsidies established under the Democrats’ health care law.
- According to the Joint Committee on Taxation (JCT), H.R. 705 would, on net, reduce the deficit by $166 million over the 2011-2021 period.
- More than 175 organizations support 1099 repeal, including many in the small business community who signed a letter for repealing the1099 reporting provisions on job creators.