ABC Hails Repeal of Expanded Tax Reporting Requirements on Business Transactions

The Associated Builders and Contractors (ABC) issued the following statement last week on the full repeal of the expanded tax reporting requirements included in the Patient Protection and Affordable Care Act (PPACA). The provision in the health care law mandated that all businesses submit a form1099 to the Internal Revenue Service for any transaction for goods or services over $600 a year:

“ABC members are grateful this compliance nightmare is over,” said ABC vice president of Federal Affairs Geoff Burr. “The construction industry is already reeling from significant job loss and with an unemployment rate over 22 percent – more than twice the national average. Adding more bureaucratic layers and costs to an industry under siege would not help facilitate a speedy economic recovery.

“However, this should not be seen as a one-time victory for the business community, but a step in the right direction,” said Burr. “It’s time to simplify our complex tax code and repeal other burdensome and costly tax provisions, such as the 3 percent withholding and the estate tax. For the construction industry, these are some of the greatest obstacles to increased economic growth and job creation.”

“Our hope is that the U.S. House of Representatives will follow in the Senate’s footsteps and repeal the form 1099 mandate as soon as possible in order to remove this cloud of uncertainty that is hanging over construction contractors,” Burr said.

The amendment repealing the expanded reporting on form 1099 was offered in the U.S. Senate to the Federal Aviation Administration Air Transportation Modernization and Safety Improvement Act (S. 223), and was agreed to by a bipartisan vote of 81 to 17. The full bill approved Feb. 17.