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Politics is big in these parts, and we’ve got it covered. John Arthur Hutchison and other staff writers will offer their inside information on the events, big news and little moments of the local political scene in Lake, Geauga and eastern Cuyahoga counties.

Thursday, March 3, 2011

LaTourette votes to repeal tax requirement for businesses to fill 1099 form for every vendor

U.S. Rep. Steven C. LaTourette, R-Bainbridge Township, today voted to repeal a tax requirement in the new health care law that would require businesses to file a 1099 tax form with the IRS for every vendor they paid more than $600 a year.

The measure, H.R. 4, passed in the U.S. House of Representatives by a vote of 314-112. It now goes to the U.S. Senate for consideration.

The Senate earlier this year passed 1099 repeal language as part of a Federal Aviation Administration bill.  The House and Senate will have to hammer out repeal language that is identical in both the House and Senate before a measure can be sent to the President for signature.

In a report released in June 2010, the IRS Taxpayer Advocate said the new 1099 reporting requirement would apply to almost 40 million businesses, including more than 1 million charities and tax-exempt organizations and more than 100,000 government entities.

“The 1099 reporting requirement has nothing to do with health care, and its days are numbered,” LaTourette said. “This would be a compliance nightmare for the IRS, and small businesses should focus on job creation, not filing tax forms reporting the purchase of toilet paper and paper towels from Costco or toner and paper from Staples.”

The congressman said H.R. 4 reduces the deficit by $166 million in the first 10 years, and is expected to reduce federal spending by nearly $20 billion over 10 years.

-- John Arthur Hutchison
Twitter: newsheraldjah

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