BOWIE, Md. (April 6, 2011) — Saying good riddance to a “burdensome and costly” stipulation, the Tire Industry Association (TIA) applauded the U.S. Senate's passing April 5, by a vote of 87-12, H.R. 4 — the “Small Business Paperwork Mandate Elimination Act of 2011.”
The bill will repeal the Form 1099 reporting provision, passed last year as part of the Patient Protection and Affordable Care Act, which mandated small businesses file a 1099 form with the Internal Revenue Service for every vendor that businesses pay more than $600 to in a year.
Bowie-based TIA is urging President Barack Obama to sign the bill into law bill, noting he has previously expressed support for the 1099 reporting provision's repeal.
If the president does not sign this bill, TIA said next year the provision kicks in, and “would prove to be an overwhelming and costly proposition for millions of American businesses.”
TIA said it has been “considerably involved in the repeal effort, including working with other associations” that also supported the repeal. The trade group rallied its members by sending out an email alert and other communications last week urging members and other tire industry professionals to contact their senators and ask they support “this crucial bill,” and TIA said it “feels their action was vital in making (the) successful vote a reality.”
“We aren't at the finish line yet when it comes to the Form 1099 reporting repeal, but it's certainly visible from here, and we are confident that the president will hold true to his previous statements and get us over the line by passing this repeal,” said TIA Executive Vice President Roy Littlefield in a press statement. “Tire industry professionals can feel confident that our efforts show what can happen when you have a strong representative association.”
The Automotive Service Association also has weighed in to support repeal of the provision. In announcing the favorable vote for H.R. 4, the trade group said Form 1099 “would have created a heavy burden for small businesses through unnecessary paperwork that takes time, energy and resources, instead of helping to create jobs.”