Stabenow Amendment to Cut Red Tape for Businesses Passes with 81 Votes
Senate Passes Senator Stabenows Amendment to Repeal 1099 Provision, Enabling Employers to Create More Jobs
WASHINGTON - The U.S. Senate today passed an amendment offered by Senator Debbie Stabenow to repeal a burdensome recordkeeping requirement for small businesses in a bipartisan vote of 81-17. Called the "1099 requirement," this IRS regulation would require small business owners to file an IRS form 1099 for each vendor from whom they make purchases of $600 or more. Many small business owners and national associations have advocated for the repeal of this provision.
"Today we provided a common-sense solution for business owners so they can focus on creating jobs, not filling out paperwork for the IRS," said Senator Stabenow. "Since last year, I have worked with my colleagues on both sides of the aisle to address this problem. If left unchecked, 40 million small businesses would see their IRS 1099 paperwork increase 2000 percent."
Last summer, Senator Stabenow joined with 11 other Senators asking the IRS to correct the 1099 issue administratively. Senator Stabenow also co-sponsored an amendment with Senator Begich last fall. Last month, Senator Stabenow urged leadership in the House of Representatives to repeal this provision. Senator Stabenow voted three times in the 111th Congress to stop these new reporting requirements (Roll call votes number 254, 253, and 232).
Along with wide bipartisan support in the Senate, the U.S. Chamber of Commerce, the National Association of Manufacturers, the American Farm Bureau, the National Association of Realtors and other organizations supported this amendment.