Baucus to introduce repeal of Form 1099 requirements

US Sen Max Baucus (D-MT), Senate Finance Committee chairman, has announced that he will introduce legislation that would repeal the requirements that businesses issue a Form 1099 to every vendor from whom they buy $600 or more worth of goods on an annual basis.

The Truck Renting and Leasing Association (TRALA) has lobbied Congress and the Obama Administration in favor of repealing the Form 1099 reporting requirement since its enactment earlier this year as part of the health care reform law known as the Patient Protection and Affordable Care Act. TRALA is also part of a multi-industry coalition that sent a letter to Congress addressing the concerns from the business community and illustrating problems that will occur if this law is kept in place.

The Form 1099 reporting requirement was added to the health care reform bill without any public hearing or input from the private sector. It was intended to raise additional monies for the Treasury by making businesses file their taxes more accurately to ensure less tax evasion.

Forcing a business to issue a Form 1099 to vendors from whom they buy $600 worth of goods in a given year will create a tremendous burden on TRALA members and the trucking industry. Businesses will have to track thousands of transactions and obtain the tax identification information for each vendor that they do business with. The ability to comply with the additional paperwork will be a burden that many businesses do not have the resources to comply with.