FOR IMMEDIATE RELEASE
ICBA Urges Senate to Repeal 1099 Reporting Burden
Washington, D.C. (April 4, 2011)-The Independent Community Bankers of America (ICBA) today urged the Senate to pass H.R. 4, the "Small Business Paperwork Mandate Elimination Act of 2011," a bill that would eliminate the ICBA-opposed 1099 reporting requirement from the health care reform act of 2010.
"ICBA is staunchly opposed to the pending IRS form 1099 reporting requirement, which would only hurt Main Street businesses and have a costly impact on our nation's fragile economic recovery," said Sal Marranca, ICBA chairman and president and CEO of Cattaraugus County Bank, Little Valley, N.Y. "ICBA urges the Senate to pass this bipartisan effort to eliminate this unnecessary tax paperwork."
The health care act of 2010 added a late provision requiring all businesses that pay another individual or business a total of $600 or more for goods or services to report that information by issuing 1099 forms to the businesses and IRS starting January 1, 2012. According to a Small Business Administration study, the cost of complying with the tax code is 66 percent higher for small businesses than large businesses because they lack the compliance capabilities to track and report each new transaction.
"Community banks and other small businesses drive economic prosperity on Main Street," said Cam Fine, ICBA president and CEO. "Now is not the time to add unnecessary tax and regulatory burdens on them-it's simply counterproductive. We urge members of the Senate to support H.R. 4 and repeal this unwarranted requirement."
For more information on this important issue, with an ICBA staff expert, please contact Aleis Stokes at 202-821-4457. For more information, visit http://www.icba.org/.