WASHINGTON — On April 5, the U.S. Senate passed the Small Business Paperwork Mandate Elimination Act (H.R. 4) that repeals the 1099 tax reporting requirement established in the health care overhaul passed last year. An identical bill was passed by the House of Representatives in March.
The National Marine Manufacturers Association strongly supported its elimination.
The 1099 provision would have required businesses to send a 1099 tax form and collect W-9 information from every vendor that purchased more than $600 worth of goods or services each year.
According to the NMMA, the concern was that, in order to comply with the requirement, businesses would have had to employ additional accounting staff to meet the large new burden of tax paperwork. According to the Small Business Administration, 97.4 percent of boat builders are considered small businesses under the SBA definition, and 94.8 percent of boat dealers have annual receipts of less than $10 million dollars.
The bill now goes to President Obama, who is expected to sign it into law.