The U.S. Senate Wednesday passed an amendment offered by Sen. Debbie Stabenow (D-Mich.) to repeal a burdensome recordkeeping requirement for small businesses in a bipartisan vote of 81-17. Stabenow is chairwoman of the U.S. Senate Agriculture Committee.
Called the "1099 requirement," this IRS regulation would require small business owners to file an IRS form 1099 for each vendor from whom they make purchases of $600 or more.
Many agriculture small business owners and national associations have advocated for the repeal of this provision.
"(Wednesday) we provided a common-sense solution for business owners so they can focus on creating jobs, not filling out paperwork for the IRS," said Stabenow.
"Since last year, I have worked with my colleagues on both sides of the aisle to address this problem. If left unchecked, 40 million small businesses would see their IRS 1099 paperwork increase 2000 percent."
Last summer, Stabenow joined with 11 other senators asking the IRS to correct the 1099 issue administratively. Stabenow also co-sponsored an amendment with Sen. Begich last fall. Last month, Stabenow urged leadership in the House of Representatives to repeal this provision.
Along with wide bipartisan support in the Senate, the U.S. Chamber of Commerce, the American Farm Bureau, the National Association of Realtors and other organizations supported this amendment.
Source: Stabenow news release