Tuesday, April 05, 2011
U.S. Senate Passes 1099 Repeal
The U.S.Senate passed the House version of the 1099 repeal legislation today, by a vote of 87-12. The Maryland Chamber of Commerce strongly supports the legislation, and we thank Senator Ben Cardin for voting to repeal. Senator Barbara Mikulski voted against the legislation.
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 So, beginning in 2012, unless repealed, businesses will have to file a 1099 for every vendor that sells them more than $600 in goods.
The House of Representatives passed the bill on March 3, by a vote of 314-112. Maryland Reps. Roscoe G. Bartlett (R-Dist. 6), Andy Harris (R-Dist. 1) and Dutch Ruppersberger (D-Dist. 2) supported the repeal.
Today’s vote sends the legislation to President Barack Obama. The President has indicated he supports the repeal, but his administration has also voiced concerns about how legislation offsets the cost of the repeal.
