WASHINGTON – Sen. Chris Coons (D-Del.) on Monday signed on as a cosponsor to Senator Max Baucus’ amendment to fully repeal Section 9006 of the Patient Protection and Affordable Care Act, which placed new requirements for businesses to report all payments to corporations for goods and certain services over $600 by filling additional 1099 forms with the IRS.
“Small business owners across Delaware have repeatedly expressed to me their serious concerns about the 1099 reporting requirements enacted last year. It will place an untold burden on their staff and weaken their bottom line,” Senator Coons said. “Small businesses are the engine that can help restart and grow our economy, but they can’t do that if owners have the added work and expense brought on by this addition to the tax code.”
The new reporting requirement is not scheduled to take effect until 2012. However, many small business owners have expressed concern that they will be required to operate under a heavy paperwork burden that will add to their cost of running their business.
The Baucus amendment was defeated last night with a 44 to 53 floor vote.
There is stand-alone legislation to repeal Section 9006 of the Patient Protection and Affordable Care Act which Sen. Coons also cosponsors — S. 3496, the Small Business Paperwork Relief Act — that may be taken up to before the 111th Congress adjourns.
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