Manchin cosponsors bill to repeal burden in 1099 provision
Washington, D.C. – Sen. Joe Manchin will cosponsor the Small Business Paperwork Mandate Elimination Act to repeal the burdensome 1099 mandate, a provision that would require businesses, charities and churches to file an IRS form for any transaction greater than $600. Sen. Mike Johanns (R-NE) is introducing the measure.
“As small businesses struggle to make ends meet, we can’t force them to take on additional burdens that any reasonable person would reject,” Sen. Manchin said in a release. “Small businesses are the engine of our economy, and they need to create jobs and put people back to work, not waste time filling out endless forms,” Senator Manchin said. “I ran my family’s small business, and I can tell you firsthand that the 1099 provision would kill jobs, paralyze the millions of small business owners who have endured the worst recession in generations and who are doing the hard work of getting our economy moving again. Democrats and Republicans should work together to make this commonsense change immediately and then move on to reviewing and fixing the other problematic parts of the health care bill.”
During the 111th Congress, Senator Manchin voted twice in favor of repealing the 1099 provision, including cosponsoring a bill with Sen. Max Baucus that would have eliminated the 1099 provision.
The National Taxpayer Advocate, a division of the IRS, estimates that the 1099 requirement would affect 40 million businesses, including more than 26 million sole proprietorships.
Unless the provision is repealed, small businesses, charities and churches will be forced to begin providing 1099 forms for basic expenses.