TIA and SEMA applaud Obama's rejection of IRS 1099 rule

Jan. 1, 2020
President Barack Obama has signed House Resolution 4 into law. The measure repeals an Internal Revenue Service regulation that was widely viewed as having an onerous impact on industry operations.
President Barack Obama has signed House Resolution 4 into law. The measure repeals an Internal Revenue Service regulation that was widely viewed as having an onerous impact on industry operations.

“Our members and all American businesses can rejoice, as the horrible 1099 reporting requirement is no more,” reports Roy Littlefield, executive vice president of the Tire Industry Association (TIA).

The TIA “spent countless hours on repealing this onerous provision, including meeting with various senators and representatives, joining with a wide coalition of other associations who also were in opposition to this requirement, and mobilizing their members to contact their representatives and senators to support the repeal,” Littlefield recounts.

“Had the requirement not been repealed, business owners would have been required to file an IRS Form 1099 to report all purchases over $600. This would have been a costly paperwork nightmare for America’s businesses at a time when they could least afford it,” he says.

“Our members can also rest assured that we will continue to fight – as we have always done – to ensure that their voice is heard in Washington,” Littlefield continues.

“I also want to thank our members, who took to the phones and their computers to let their representatives and senators know that this requirement must be repealed,” he notes. “When members support their association and get involved, great things can be accomplished.”

 

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Opposition was also mounted by the Specialty Equipment Market Association (SEMA).

“Small businesses remain the most important economic engine driving America’s expanded recovery,” according to Chris Kersting, SEMA’s president and CEO, who had sent a letter to the White House.

“Eliminating the 1099 reporting burden will allow our companies to focus on producing tangible goods and services rather than wasteful paperwork,” Kersting says.

For more information, visit www.tireindustry.org and

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