The U.S. House of Representatives has passed H.R. 4, the
“Small Business Paperwork Mandate Elimination Act of 2011,”
which repeals the 1099 reporting mandate in the new health
care law, by a vote of 314-112.
The reporting mandate requires small businesses to
file a 1099 form with the Internal Revenue Service for every
vendor that businesses pay more than $600 in a year, and would
have created a heavy burden for small businesses through
unnecessary paperwork.
The House bill faces difficult hurdles in the U.S.
Senate. Both chambers have voted several times to repeal the
legislation, each time failing to reach common ground on how
to cover the cost of the lost revenue. The Senate passed its
own version of the repeal in February; however, the House
would not agree to the budget offset.
House and Senate leaders have said they will work
together to come to an agreement on an offset that is
acceptable. Rep. Eric Cantor, R-Va., House majority leader,
said the next move will have to be negotiation.
“We’ll have to see where the differences lie between
the two bills,” Cantor said. “Hopefully we can get this to the
president’s desk as quickly as possible.”
To view further information on the markup and repeal
of the 1099 mandate, visit ASA’s
legislative website.
For additional information visit www.asashop.org.
