House committee approves repeal of 1099 mandate
Feb. 18, 2011 — The U.S. House of Representatives’ Ways and Means Committee on Thursday approved repealing a mandate that would have required small businesses to file 1099 forms with the IRS for every vendor paid more than $600 a year.
The Automotive Service Association (ASA) supported the repeal, stating in a recent press release_notes that the mandate would have placed a heavy burden on small businesses through unnecessary and time consuming paperwork.
Rep. Dave Camp, R-Mich., chairman of the committee, called the legislation a victory for 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,” he said. “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.”
Camp said he’s hopeful the full House will take up the legislation soon. For more information on the 1099 mandate, which was a part of the new health care law, visit the ASA’s legislative website, takingthehill.org.