Fix to 1099 Reporting Requirement Pushed for by Klobuchar Passes Senate

Press Release

Continuing her push to repeal the 1099 reporting requirement, U.S. Senator Amy Klobuchar cosponsored a successful amendment to eliminate the burdensome provision for businesses that passed as part of the health care law. The amendment passed with a bipartisan vote of 81-17. The vote came after Klobuchar, Ben Nelson (D-NE), and Maria Cantwell (D-WA) called on House Speaker John Boehner to support repeal of the 1099 requirement.

"It is important that we change this reporting requirement which would be a burden on all businesses,"said Klobuchar. "As we move forward I will fight to cut red tape for businesses and push for policies to make sure our businesses can compete in a global economy."

Currently the 1099 provision would require all businesses, charities, and state and local governments to file a 1099 form for every vendor from whom they purchase $600 or more in goods when it takes effect in 2014. It could increase 1099 filings by America's businesses by 2000 percent and according to the IRS, this provision, would impact 40 million American businesses, including 26 million sole proprietorships.

The bill that passed as an amendment to the FAA Reauthorization bill would:

Eliminate the 1099 reporting requirement in healthcare reform
Require the Director of Office of Management and Budget to cut $44 billion in spending to pay for the measure;
Preserve funding for Medicare, Social Security, Defense of Department, and Veterans Affairs.

The Senate now must pass the FAA Reauthorization Act for the measure to take effect.

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