Tuesday, January 11, 2011
Bartlett & Ruppersberger Co-Sponsor 1099 Repeal Bill
Legislation has been introduced in the U.S. House of Representatives to repeal the expanded 1099 reporting mandate that is set to take effect next year.
The Maryland Chamber thanks Reps. Roscoe Bartlett (R-Dist. 6) and Dutch Ruppersberger (D-Dist. 2) for signing on as co-sponsors, and we encourage the rest of the delegation to support the bill (H.R. 144) as well.
The new mandate, which was part of the federal health care law, will greatly increase administrative costs for businesses. Current law generally requires that a Form 1099 be filed for purchases of services over $600 during a calendar year – typically from small contractors and vendors. One of the mechanisms used to pay for the new federal health care law was an expansion of 1099 filing requirements to goods purchased, and purchases from corporations, starting in calendar year 2012. So, beginning in 2012, businesses will have to file a 1099 for every vendor that sells them more than $600 in goods.
Congress attempted to repeal the mandate last year, but efforts failed. The Maryland Chamber and our business allies will continue to fight for repeal of the 1099 mandate before its 2012 effective date.
