Key Vote Letter Supporting an Amendment Offered by Sen. Johanns to S. 493, the "SBIR/STTR Reauthorization Act of 2011"
March 29, 2011
TO THE MEMBERS OF THE UNITED STATES SENATE:
The U.S. Chamber of Commerce, the world’s largest business federation representing the interests of more than three million businesses and organizations of every size, sector, and region, strongly supports an amendment offered by Senator Mike Johanns to S. 493, the “SBIR/STTR Reauthorization Act of 2011,” which would fully repeal Section 9006 of the “Patient Protection and Affordable Care Act” (PPACA), usually referred to as the 1099 reporting mandate, and strongly opposes any amendments that would weaken the Johanns amendment, including a second degree amendment expected to be offered by Sen. Menendez, which could leave intact the 1099 requirement.
The 1099 reporting mandate, if not repealed, will force more than 40 million entities, including governments, nonprofits, and both small and large businesses, to comply with onerous data collection and IRS information filing burdens on virtually all noncredit card purchases totaling $600 or more with any vendor in a tax year. At a time when they can least afford it, entities will have to institute new complex record-keeping, data collection and reporting requirements to track every purchase by vendor and payment method. This provision will dramatically increase accounting costs and could expose businesses to costly and unjustified audits by the IRS.
The Chamber strongly supports the Johanns amendment to S. 493, which would repeal the 1099 mandate, and strongly opposes any weakening amendments, including the Menendez amendment. The Chamber may consider including votes on, or in relation to, these issues in our annual How They Voted scorecard.
R. Bruce Josten