March 03, 2011

House clears 1099 relief measure

March 4, 2011 – The House voted 314-112 Thursday to pass H.R. 4, a NAFCU-supported bill that would repeal a pending expansion of 1099 reporting beginning Jan. 1.

Dan Berger, NAFCU's executive vice president of government affairs, wrote House Speaker John Boehner, R-Ohio, and Minority Leader Nancy Pelosi, D-Calif., the day before the vote to urge action.

"Credit unions and other small businesses are the backbone of America's economy and should not be hampered by onerous new regulations that will require significant amounts of time and resources to comply with," he wrote. "NAFCU supports the passage of H.R. 4 to repeal this needless tax compliance burden."

The reporting provision, included in last year's health-care reform law, will require all small businesses, including credit unions, to send a 1099 form to vendors from whom they purchase at least $600 in goods and services; a copy will have to be sent to the IRS as well.

The proposal to repeal this reporting expansion has the support of the White House and bipartisan support in the House and Senate. House Ways and Means Committee Dave Camp, R-Mich., on Thursday urged the Senate to swiftly take up and clear the measure.