The U.S. House of Representatives is likely to vote today on a measure to repeal the expanded 1099 reporting requirement--a significant issue for small businesses across the country.

As the House considers a number of tax provisions this afternoon, they are likely to address legislation, the Small Business Tax Relief Act, which would effectively repeal the expanded 1099 provision as passed recently section 9006 of the Patient Protection and Affordable Care Act (PPACA).

"This expanded 1099 reporting requirement is a huge issue for small businesses," stated NSBA President Todd McCracken, "Not merely for the hugely increased reporting burden, but also for the negative impact it will undoubtedly have on their bottom line."

The expanded 1099 provision would require all businesses who pay more than $600 annually to any goods or service provider to file a 1099 report. Currently businesses must only file 1099 reports on non-corporation service providers. The new, expanded 1099 reporting requirements stand to increase the average number of firms for which small-businesses must file a 1099 report from an average of 10 to an average of 86.
 
Additionally, this provision holds dire consequences for small businesses bottom line as a likely outcome will be the consolidation purchases by their clients in order to file fewer reports. Small businesses would see their client base dwindle as customers look to big-box stores as a supplier of more diverse goods and services.

Please take a few moments NOW to contact your Representative.