U.S. Senate Votes to Repeal Form 1099 Reporting Requirements
The 1099 requirement was passed in 2010 as part of the health care reform law known as the Patient Protection and Affordable Care Act. This provision would force all businesses to issue a Form 1099 to vendors from whom they buy $600 worth of goods or more on an annual basis. This 1099 mandate was scheduled to take effect in 2012.
This requirement was expected to result in massive amounts of paperwork and increased compliance costs. TRALA member companies would have to issue hundreds of forms each year, as well as obtain the tax identification information for each vendor that they do business with. For truck renting and leasing companies, this could have meant filling out a Form 1099 for the most frivolous functions such as for fueling stations, parts vendors, office equipment and even electricity and phone bills.
Last November, following receipt of a letter from TRALA and a coalition of associations, Senate Finance Committee Chairman Max Baucus (D-MT) introduced an amendment that would repeal this Form 1099 mandate and he received strong support amongst his colleagues. This amendment, while it failed to move in the lame duck session of Congress, signaled that a repeal of the 1099 mandate could succeed in a bipartisan manner. In response, earlier this winter, Congressman Dan Lungren (R-CA) introduced HR 4 in the House of Representatives and it passed by wide margins in March 2011.
If you have any questions on this issue, please contact TRALA's Jake Jacoby at email@example.com or 703-299-9120.