Senate Votes No on 1099 Repeal Amendments
Contrary to expectations, the U.S. Senate voted not to repeal the 1099 reporting provisions incorporated into the law in March 2010. The two 1099 amendments we mentioned in yesterday’s update were brought to the floor that very afternoon. The amendments put forward by Sen. Mike Johanns (R-NE) and Sen. Bill Nelson (D-FL) were each met with opposition from only a slight majority and failed to pass.
It’s our hope that both the House and the Senate will take up debate on the repeal of the 1099 reporting requirement later this session or when they return in January. However, an attempt to pass the repeal in the House as a “stand alone” bill failed earlier this summer.
Failure to repeal the 1099 law means that beginning in 2012, businesses large and small must report to the IRS any transaction greater than $600 to an individual vendor. “This will create a huge administrative headache for small business photographers, and we hope Congress will reconsider their decision not to repeal this requirement,” says David Trust, CEO of PPA.
The vote on each of these amendments came on the heels of a vote limiting further debate on additional amendments to H.R. 5297 - The Small Business Jobs Act of 2010. (In fact, that meant Sen. Boxer’s home office deduction amendment did not get the chance to be brought to the floor.) The decision to limit further debate could lead to the bill’s passage before the end of the week.
We will update you on the bill’s passage and bring you more information on how to comply with the 1099 reporting requirement as the issue unfolds.
In addition to representing members on copyright issues, PPA is a strong advocate on small business issues, primarily relating to health care. Through the Small Business Coalition for Affordable Healthcare, PPA advocates health care solutions that meet the needs of small business owners, employees, the self-employed and their families. In previous congressional sessions, PPA has supported various health reform bills, in particular those that would provide trade associations the ability to create insurance pools on behalf of its members.