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January 24, 2011 01:00 AM

Three Senate Democrats urge Boehner to tackle 1099 provision

Jessica Zigmond, Crain News Service
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    WASHINGTON (Jan. 24, 2011) — Three Democratic senators have sent House Speaker John Boehner (R-Ohio) a letter urging the House to quickly pass a measure that would repeal the controversial 1099 reporting requirement in the Patient Protection and Affordable Care Act.

    The provision—which requires businesses to file a 1099 Form with the Internal Revenue Service for every vendor with whom they have at least $600 in transactions—has been described as burdensome to businesses, especially small businesses.

    “Small businesses in our states raised concerns that in order to comply with this new requirement, which takes effect next year, businesses will have to institute new record-keeping methods,” wrote Sens. Ben Nelson of Nebraska, Maria Cantwell of Washington and Amy Klobuchar of Minnesota. “The change is particularly onerous for small businesses, our nation´s engines of growth, who cannot afford to employ extra lawyers and accountants to comply with the new rules.

    The correspondence follows the House´s repeal of the Affordable Care Act on Jan. 19 in a vote of 245 to 189. “This past November, voters sent both parties a clear message: Focus on job creation,” the letter said. “As President Obama has recently noted, our economy will recover more quickly and create more jobs if we can reduce regulations on business.”

    This report appeared in Modern Healthcare magazine, a Chicago-based sister publication of Tire Business.

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