Source:  Press Release 3/3/11

Renee Ellmers:

Today, House Small Business Committee Member Renee Ellmers (R-NC02) released the following statement regarding the passage of H.R. 4, The Small Business Paperwork Elimination Act:
“Today we took away a barrier to job creation by removing the health care law’s 1099 reporting mandate with the passage of H.R. 4, a bill that I Co-Sponsored.

We heard the concerns of small business owners who testified to the Small Business Committee about the hardships reporting requirements like these put on them and the resulting impact on their ability to grow their businesses and hire new employees.  

Jerol Kivett, the owner of a business in North Carolina’s Second District, testified that the 'cumbersome and confusing’ new laws and regulations were making recovery in this tough business climate even more difficult as they added significantly to the costs of doing business for his church pew manufacturing company.  We heard many similar stories from small business owners from across the country.

We also listened to the American people who let us know loud and clear that job creation has to be our top priority and that we need to be passing legislation that will promote, not hamper, job creation – especially that occurring in the private sector.

Today’s passage of this bill will bring some relief to the job creators across the country and promote a better environment for creating jobs and growing our economy.”

Virginia Foxx:

Congresswoman Virginia Foxx today voted for abill (H.R. 4) to eliminate a provision of the 2010 health care overhaul that created a massive new paperwork burden for businesses.  Know as the “1099” provision, it required business to file millions of new tax forms with the IRS, a burden that fellhardest on small businesses.  

“North Carolina small businesses and job creators hated this ridiculous new paperwork mandate—and they let me know about it,” Foxx said.  “Rather than give Americans another reason to hate our tax system, the House did the right thing and repealed this job-killing mandate.  No longer will small businesses have to spend hours and hours tracking down information and filing IRS forms to comply with this regulation.”

The provision repealed today by the House originated in Section 9006 of last year’s health care overhaul.  The provision required businesses to report to the IRS any transactions with vendors thattotal $600 or more over the course of a year. This amounted to a massive unfunded mandate on American job creators who faced expensive new tax paperwork and record-keeping requirements.

“Small businesses work hard to stay afloat in any economic climate,” Foxx said.  “This intrusive government mandate doesn’t make sense at any time, and especially not during an emerging economic recovery.  By repealing this requirement, Congress is taking away a significant roadblock to productivity and job-creation.”

A recent National Federation of Independent Business (NFIB) Small Business Survey determined that tax paperwork, costing $74 an hour, is the most expensive burden placed on small businesses by the federal government.  The NFIB supported the repeal of the 1099 provision and the NFIB’s tax counsel referred to the 1099 mandate as having a “direct negative impact on small business”.

Heath Shuler:

Small businesses across Western North Carolina received good news today when U.S. Representative Heath Shuler and the House of Representatives voted to repeal onerous and costly reporting provisions contained in last year’s health insurance reform law.

H.R. 4, the Small Business Paperwork Mandate Elimination Act of 2011, repeals the requirement placed on small businesses to file 1099 forms with the IRS for the purchase of goods or services from a vendor totaling more than $600 a year.

The bill also repeals the IRS 1099 reporting requirement for individuals and companies who own rental properties.  

“This bill is a great example of Democrats and Republicans coming together to find commonsense ways to solve a problem,” Rep. Shuler said. “Repealing this provision provides immediate relief to our small business owners and reduces the amount of paperwork they will have to do. Instead they can focus their energy on growing their companies and creating jobs.”  

Shuler was a co-sponsor of H.R. 4, which was originally introduced by Rep. Dan Lungren (R-CA). The bill passed the House with bipartisan support 314 – 112.

Walter B. Jones:

Today U.S. Congressman Walter B. Jones (NC-3) voted in favor of H.R. 4, the Small Business Paperwork Mandate Elimination Act of 2011.   H.R. 4 would repeal the burdensome IRS Form 1099 requirements created under Obamacare, which requires a business to file the form for all purchases of property and services in excess of $600 per year.  H.R. 4 would reduce the deficit by $166 million over ten years, and would cut federal spending by nearly $20 billion over ten years.  H.R. 4 passed the House by a bipartisan vote of 314-112.

“With America’s need for jobs is at an all-time high, Congress must remove unnecessary impediments that stunt the growth of small business,” said Jones.  “Small business owners do not need another obstacle when trying to boost job creation.”

The 1099 reporting requirement will impose a huge tax compliance burden on small businesses, forcing them to devote resources to tax filing instead of business expansion and job creation.  According to the National Federation of Independent Business (NFIB) this reporting requirement will have a “direct negative impact on small businesses,” and more than 170 small business organizations throughout the employer community have called for its repeal.  The job-killing Form 1099 reporting requirements were added in Obamacare strictly as a way to help finance the Democrats’ new health entitlement.

Mike McIntyre: 

Today, U.S. Representative Mike McIntyre voted to pass the Small Business Paperwork Mandate Elimination Act of 2011 which will eliminate  a requirement that businesses file an IRS form 1099 for all purchase of property and services that exceed $600 per year.  Previously, businesses were required to report only purchases of service and only from non-corporate entities.  McIntyre has heard from business owners all across Southeastern North Carolina who were concerned about this reporting requirement and the time and efforts it would take to comply.