PIA National Praises Bipartisan Senate Vote to Repeal Expanded 1099 Reporting Requirement
Insurance Agents Say Action Is "Major Victory for Small Businesses"
WASHINGTON, Feb. 3, 2011 /PRNewswire-USNewswire/ --The National Association of Professional Insurance Agents (PIA) is praising the passage of a bipartisan amendment in the Senate to repeal a provision of the healthcare law that imposes an onerous burden on businesses, especially small businesses.
By a lopsided 81-17 vote, the Senate passed an amendment that would repeal a healthcare reform provision that requires businesses to file 1099 forms with the Internal Revenue Service beginning in 2012 any time they spend more than $600 a year with any other business. That requirement is a significant expansion of the current 1099 reporting requirement, which applies only to payments to unincorporated service providers.
"The overwhelming margin of this bipartisan vote demonstrates that this 1099 provision was ill-conceived because it is bad for business and bad for the economy," said PIA National Executive Vice President & CEO Leonard C. Brevik. "All that remains is for the House of Representatives to follow suit and approve this amendment without delay." President Obama indicated in his State of the Union address that he supports repeal of the 1099 provision.
"This is a major victory for American businesses, especially small businesses," Brevik said. "This expansive requirement would have placed an overwhelming, onerous reporting and paperwork burden on small businesses, which are the economic engines that power our economy. In addition, state and local governments as well as nonprofits would have seen dramatically increasing costs."
The Joint Committee On Taxation has estimated that the 1099 provision would have generated about $17 billion in revenue from 2012-2019. The amendment approved by the Senate directs the Office of Management and Budget to tap up to $44 billion in unspent funds appropriated for other purposes to cover the revenue that would be lost by repealing the 1099 requirement. The amendment was offered by Sen. Debbie Stabenow (D-Mich.); it was essentially the same proposal that has been championed since last year by Sen. Mike Johanns (R-Neb.).
PIA conducted a nationwide public education and grassroots political action campaign in support of the push to repeal the expanded 1099 reporting requirement. A broad coalition of groups also advocated repeal, including the National Federation of Independent Business (NFIB).
Founded in 1931, PIA is a national trade association that represents member insurance agents and their employees who sell and service all kinds of insurance, but specialize in coverage of automobiles, homes and businesses. PIA members are Local Agents Serving Main Street America SM. PIA's web address is www.pianet.com.
This press release is online at: http://www.pianet.com/NewsCenter/PressReleases/2-3-11.htm
SOURCE National Association of Professional Insurance Agents