Business Groups Urge Senators to Back Repeal of Form 1099 Rules

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The U.S. Chamber of Commerce and the Coalition for Fairness in Tax Compliance warn senators ahead of two key small business bill votes set for Tuesday that the only pro-business stance lawmakers can take is to vote for a full repeal of new Form 1099 reporting requirements for businesses. In letters to members of Congress, the business groups say they support an amendment to the Small Business Jobs and Credit Act (H.R. 5297) from Sen. Johanns that would fully repeal the new requirement, while strongly opposing a competing amendment from Sen. Bill Nelson that simply scales back the Form 1099 requirements. The Form 1099 rules were strengthened in the Patient Protection and Affordable Care Act (Pub. L. No. 111-148) by requiring firms to report payments of more than $600 per year to any corporation.