Bill signed to repeal new 1099 reporting rules
April 19, 2011
by Meat&Poultry Staff
WASHINGTON – Last week, President Obama signed HR 4, a bill that repeals the requirement that businesses begin filing 1099 information-reporting forms for most business-to-business transactions starting in 2012, into law. The National Restaurant Association and its members have been aggressive advocates for repeal, testifying on Capitol Hill, writing grassroots letters to lawmakers, and lobbying Congress for quick action. The enhanced 1099 mandate was part of 2010 health care overhaul law.
This marks the first provision of the law to be repealed.
"Today, I was pleased to take another step to relieve unnecessary burdens on small businesses by signing HR 4 into law,” the president said in his signing statement. “Small business owners are the engine of our economy and because Democrats and Republicans worked together, we can ensure they spend their time and resources creating jobs and growing their business, not filling out more paperwork.”
The House voted 314-112 March 5 in favor of repeal. The Senate followed on April 5 with an 87-12 vote to repeal the mandate.
In a letter to the Senate April 4, the NRA urged Congress to act swiftly. "Our industry is comprised of 960,000 restaurant and foodservice outlets, and is the second-largest private-sector employer. Yet, the vast majority of these businesses do not have a large administrative staff to handle the dramatically increased recordkeeping and reporting responsibilities under the expanded 1099 reporting provisions" of the health care law.