Washington -- The following information was released by the National Association of Mutual Insurance Companies:
With the U.S. House of Representatives' vote today to repeal the 1099 tax reporting provision from last year's healthcare law, the National Association of Mutual Insurance Companies (NAMIC) says "there is nothing to debate, it's time to act" and is urging the Senate to quickly follow suit.
"President Obama has called the 1099 provision a 'flaw' in his healthcare program, and there is little doubt he will sign legislation to repeal it," says Jimi Grande, senior vice president of federal and political affairs at NAMIC. "So there is nothing to debate, it's time to act. The House has done its part, now it's up to the Senate to finish the job and spare America's businesses from wasting any more time, effort and resources doing useless paperwork."
The Small Business Paperwork Mandate Elimination Act, also known as H.R. 4, would eliminate section 9006 of last year's Patient Protection and Affordable Care Act. Under the healthcare law, businesses would be required to file a separate 1099 form with the Internal Revenue Service for every expenditure to a single vendor of over $600 in one year, beginning in 2012. Under the system as it stands now, filings are only required for payments to unincorporated entities, but the rule taking effect next year would require filings for mundane expenses such as phone or internet service and office supplies.
According to Grande, "NAMIC members can't ignore the law simply because lawmakers promise they'll repeal the provision. Already companies have had to begin preparing for the requirement. Those resources, in some cases millions of dollars, should be better spent on growing their businesses and creating jobs."
For further information, contact
Matt Brady
Director of Media Relations
(202) 580-6742 Tel
mbrady@namic.org
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