National Restaurant Association Says 1099 Repeal is Victory for Restaurant Operators, Small Business OwnersApril 05, 2011
The National Restaurant Association today praised the Senate’s action to repeal the onerous 1099 mandate, which was included in last year’s health care law.
The Senate passed H.R. 4, The Comprehensive 1099 Taxpayer Protection and Repayment of Exchange Subsidy Overpayments Act of 2011, sponsored by Senators Mike Johanns (R-NE) and Joe Manchin (D-WV) with a bipartisan vote of 87 to 12.
H.R. 4 repealed the expanded 1099 reporting requirement found in the “Patient Protection and Affordable Care Act,” which was overly burdensome, making nearly every business-to-business transaction reportable to the Internal Revenue Service.
“Our industry is the nation’s second largest private-sector employer, but restaurants large or small, really operate as small businesses or collections of independent operations,” said Scott DeFife, Executive Vice President of Policy and Government Affairs for the National Restaurant Association. “Today’s vote is a victory for thousands of restaurant operators and small business owners who do not have large administrative staffs to handle recordkeeping and reporting responsibilities. This action will help the industry continue to devote resources into job creation rather than the burdensome 1099 requirement that was enacted last year.”
The National Restaurant Association aggressively worked to repeal the 1099 provision, sending letters urging repeal to the Senate with the backing of 49 state restaurant associations, providing small business testimony about the overwhelming challenges of the provision, and rallying grassroots action to urge Congress to overturn the requirement.
The bill now goes to President Obama for his signature.
Contact: Sue Hensley 202.331-5964, Annika Stensson 202.973-3677 at the National Restaurant Association or visit www.restaurant.org.for more information.
ORLA's GA team can be reached at 503.682.4422.