Senate Vote Today on Repeal of Massive 1099 Reporting Mandate

The United States Senate will vote today to repeal or keep intact the massive new paperwork burden that was included in the new health care law. Section 9006 of the "Patient Protection and Affordable Care Act" requires all businesses to file a 1099-Misc for vendor payments that exceed $600 or more annually. Small business owners are rightly outraged by this new mandate, and are urging Congress and the President to repeal it. The Senate will have an opportunity to do so when it votes on the small business lending and jobs bill today.

Senator Johanns's Amendment fully repeals the mandate, and SBE Council has urged all Senators to support his measure. Meanwhile, Senator Nelson offered a competing amendment that only serves as a partial "fix" at best while raising taxes on energy companies -- which means small business owners will get hit with higher prices. SBE Council will KEY VOTE the Johanns Amendment as a vote for small business in our Ratings of Congress.

Here are portions of SBE Council's KEY VOTE letter that was sent to all U.S. Senators this morning:

Dear United States Senator:

The Small Business & Entrepreneurship Council (SBE Council) strongly urges you to vote for the only Amendment to the “Small Business Jobs and Credit Act of 2010” that will fully relieve small business owners of a costly paperwork nightmare. The Johanns Amendment (SA 4596) will fully repeal expanded 1099-Misc reporting as mandated by Section 9006 in the “Patient Protection and Affordable Care Act” (PPACA).

The Johanns Amendment is the only pro-small business vote. SBE Council will KEY VOTE the Amendment as a vote for small business America in our forthcoming Ratings of Congress.

The Nelson Amendment (SA 4595) unsuccessfully tries to address a small portion of the problem. In fact, it complicates 1099 reporting even further than Section 9006. The Amendment also imposes a tax hike on energy companies, which will eventually make its way down to small firms in the form of higher prices. So, with the Nelson “fix”, not only will our nation’s small business owners remain burdened with a costly paperwork nightmare, they will also get hit with higher energy costs and added 1099 complexity beyond what Section 9006 mandates.

Small business owners are struggling to keep their doors open. The have done all they can to keep every employee on payroll. Revenues are weak and they have little confidence that the economy will get better. They are furious that Congress continues to pile on with new mandates and taxes that will further rob them of their precious time and capital.

If you have listened to small business owners over the congressional break, you know where they stand on this issue – full repeal of Section 9006. I urge you to vote for the Johanns Amendment.

Please call your U.S. Senators and demand that they vote for full repeal! Call them at 202-225-3121 and tell them to vote for the Johanns Amendment as it is the only solution to this pending paperwork nightmare.

Karen Kerrigan, President & CEO