Senate repeals 1099 tax reporting requirement
WASHINGTON — The U.S. Senate Tuesday voted to repeal a law that posed a burdensome tax reporting requirement for businesses.
In an 87-12 decision, the legislative body passed H.R. 4, the Small Business Paperwork Mandate Elimination Act, sponsored by Rep. Dan Lungren, R-Calif. The bill repeals a provision in the Patient Protection and Affordable Care Act of 2010 that required businesses to file a Form 1099 with the Internal Revenue Service whenever they made noncredit-card payments totaling $600 or more to a vendor during a single year.
The news follows one month after the House of Representatives voted 314-112 to approve the bill.
In response to the bill's passing, the National Community Pharmacists Association commended the House and Senate for their efforts. “This bill will allow local pharmacists to spend more time providing expert medication counseling and care to patients and less time filling out paperwork for the IRS," NCPA said. "That’s why NCPA has long been an active member of the Small Business Coalition for Affordable Healthcare, which has been vocal from the start in seeking legislative solutions to this potential problem."
In addition to the NCPA, the National Association of Chain Drug Stores also lauded the decision, noting that it has consistently supported bicameral and bipartisan efforts to repeal the 1099 requirement.
“Repealing the burdensome 1099 provision is in the best interest of economic growth and job creation, and permits pharmacies — the face of neighborhood health care — to provide the most accessible and affordable healthcare services to patients," said NACDS president and CEO Steve Anderson. "Everyone is better served when pharmacy can focus on patients, not paperwork."