Cohen Votes to Eliminate 1099 Provision

WASHINGTON, D.C. – Congressman Steve Cohen (D-TN) today voted to eliminate an unpopular tax-reporting requirement in the Affordable Care Act that harms small business owners. The bipartisan measure which the Congressman cosponsored -- The Small Business Paperwork Mandate Elimination Act of 2011(HR 4) -- passed the House of Representatives by a vote of 314-112.

“The 1099 provision should have never been included in our health reform plans,” said Congressman Cohen. “Small businesses are the backbone of our economy. During tough economic times like these, we should do everything we can to help small businesses grow and prosper. Eliminating the 1099 provision improves the Affordable Care Act while helping small businesses save money and eliminate burdensome paperwork.”

The 1099 reporting requirement section of the healthcare law requires businesses to send the IRS a form detailing every vendor, supplier, contractor, or other business entity they pay $600 or more for goods or merchandise in every year. In addition to sending a 1099 form to the IRS, businesses would also have to send copies of the form to all other business entities listed on their 1099 form. These requirements do nothing to improve the healthcare people receive, but they greatly increase the cost and complexity of complying with the tax code for small businesses.