FOR IMMEDIATE RELEASE
ICBA Supports Efforts to Overturn 1099 Reporting Requirement
Washington, D.C. (January 25, 2011)-The Independent Community Bankers of America (ICBA) today announced its support for bipartisan efforts to eliminate an ICBA-opposed tax burden from the health-care reform act. Bipartisan House and Senate legislation would eliminate an unpopular rule dramatically expanding IRS reporting requirements for small businesses.
"ICBA thanks lawmakers on both sides of the aisle who are working to eliminate unnecessary tax burdens on community banks and other small businesses," said Jim MacPhee, ICBA chairman and CEO of Kalamazoo County State Bank, Kalamazoo, Mich. "Forcing even more paperwork requirements on these Main Street institutions would have disastrous consequences for our nation's economic recovery."
The health-care reform act of 2010 included a provision requiring businesses that pay another individual or business $600 or more for goods or services to issue Form 1099s beginning in 2012. Several measures in the House and Senate have been introduced to eliminate this new requirement following an outcry from small businesses on the excessive regulatory burden it would pose.
"Community banks and other small businesses are the engines of our Main Street economies," said ICBA President and CEO Cam Fine said. "ICBA has vigorously opposed the 1099 reporting requirement. We're pleased there is bipartisan support for eliminating this onerous tax reporting mandate and we look forward to working with Congress to overturn it."