Klobuchar Continues Push to Repeal 1099 Reporting Requirement

Press Release

Continuing her efforts to help small businesses cut through red tape, U.S. Senator Amy Klobuchar today voted for a successful amendment that would repeal the new 1099 reporting requirement for businesses that passed as part of the health care law last year. The amendment, offered by Senator Mike Johanns (R-NE), passed the Senate by a vote of 87 to 12 today. Klobuchar has helped lead the effort in the Senate to repeal the burdensome tax-filing provision that would impact 40 million American businesses, including cosponsoring previous legislation to eliminate this provision.

"We need to allow our small businesses to focus on creating jobs -- not filling out forms," Klobuchar said. "At a time when our top priority has to be promoting economic growth and job creation, I believe we need to cut through the red tape and eliminate this excessive regulation."

Under the current 1099 reporting rule scheduled to take effect in 2012, all businesses, charities, and state and local governments would be required to file a 1099 form for every vendor from whom they purchase $600 or more in goods. If implemented, this requirement could increase 1099 filings by America's businesses by 2000 percent.

Klobuchar has pushed for ways to reduce unnecessary red tape for small businesses. Last year, Klobuchar joined 11 other senators in urging the Internal Revenue Service to investigate how to reduce the paperwork and time constraints these new rules would create.

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