News & Resources

Senate Repeals 1099 Tax Reporting Law

February 4, 2011

The Senate voted 81-17 on Feb. 2 to repeal the new tax reporting requirement known as the IRA form 1099. The amendment was offered by Sen. Debbie Stabenow (D-MI) to the Federal Aviation Administration reauthorization bill.

The 1099 mandate included in the new healthcare law required governments, nonprofits, and businesses of all sizes across the nation to report IRS information on virtually all non-credit card purchases totaling $600 or more with any vendor in a tax year. By requiring an employer to issue a 1099 for every $600 payment or for any series of payments that accumulates to $600, the amount of paperwork and compliance will drastically increase. If this provision is implemented, the mandate will impose substantial burdens on the backs small businesses – especially farms and ranches.

The House must now act on the same language or a similar amendment before 2012. The Small Business Paperwork Mandate Elimination Act of 201, (HR 4) introduced by Rep. Dan Lungren (R-CA) to repeal form 1099 information reporting requirements now has 263 cosponsors. NMPF urges members of Congress to support this effort.

NMPF, along with 27 other agriculture groups, have sent several letters of support to Congress regarding the reality of the 1099 reporting, including letters to Senator Max Baucus and Senator Mike Johanns.