By Alexa Gitler- Talk Radio News Service
Sen. Mike Johanns (R-Neb.) told reporters Wednesday that he hopes to bring an amendment to the floor that would repeal a provision in the health care reform law requiring businesses to file a 1099 tax form if they spend more than $600 per year through an individual vendor.
“It could be for something as trivial as paying the phone bill,” he said. “Can you imagine how many 1099s Verizon will have to deal with?”
Johanns noted that he hopes the amendment will pass prior to the August recess.
With the new provision in effect, it is expected to impact over 40 million businesses all over the country including approximately 26 million sole proprietorships.
“In addition to the filing requirements and charges that businesses will pay, they will also have to pay for a tracking fee,” said Johanns.
Johanns explained that the health care bill went through congress so quickly and had so many components that little things like this provision were missed.
“I can’t imagine that a Senator could go back home in August and tell their constituents that he or she voted against this amendment when it is so critical for small businesses all over the country,” Johanns said.
Added Johanns, “This is the priority of Republican Senate leadership to try and get this passed.”