Efforts to repeal unpopular new 1099 reporting requirements gained momentum yesterday, as President Obama in his State of the Union address signaled his willingness to address the issue.
"Anything can be improved," the President told Congress Tuesday night. "If you have ideas about how to improve this law by making care better or more affordable, I am eager to work with you. We can start right now by correcting a flaw in the legislation that has placed an unnecessary bookkeeping burden on small businesses."
President Obama was referring to 1099 reporting requirements that small businesses believe are too burdensome. The requirements were included in President Obama's health care reform bill and are for business payments made for goods and certain services to the IRS using Form 1099.
Form 1099 requirements are a hot topic on AFP's Discussion Board: http://bit.ly/aFw25l.
Earlier in the day, two key Senate leaders, Majority Leader Harry Reid (D-NV) and Finance Committee Chairman Max Baucus (D-MT), introduced legislation to repeal 1099 reporting. One Republican, Sen. Scott Brown of Massachusetts, already signed on to the bill as a co-sponsor.
The bill by Reid and Baucus could merge with a Republican version introduced by Sen. Mike Johanns of Nebraska. Johanns has 55 co-sponsors for his bill, including 14 Democrats. Another Democratic Senator, Debbie Stabenow of Michigan, introduced a bill identical to one in the House of Representatives by Rep. Daniel Lundgren (D-CA). Lundgren's bill boasts 233 Republican co-sponsors. Stabenow also signed on as a co-sponsor of the Johanns bill.
"Small businesses need to focus on creating good-paying jobs—not filing paperwork," said Baucus in a statement.