Farm Bureau Backs Bills Repealing Form 1099 Requirements


***Update*** The Senate has passed an amendment to repeal the 1099 requirement which was offered by Sen. Debbie Stabenow, chair of the Senate Ag committee on a 81-17 vote.

Farm Bureau supports two bills that have been introduced in the Senate to repeal IRS Form 1099 reporting requirements that were passed as part of health care reform legislation.

S. 72 was introduced by Sen. Max Baucus (D-Mont.) and has 19 cosponsors. It is a companion to H.R. 4, the Small Business Paperwork Mandate Elimination Act of 2011, introduced by Rep. Dan Lungren (R-Calif.), which is also supported by Farm Bureau.

S. 18, the Small Business Paperwork Mandate Elimination Act, has been introduced by Sen. Mike Johanns (R-Neb.) and has 59 cosponsors.

Under current law, IRS Form 1099-Misc must be filed when a person engaged in a trade or business pays $600 or more to a non-employee for services performed during the calendar year. Rental payments are included in the reporting requirement but payments made to corporations are generally excluded.

Unless the provision is repealed by Congress, beginning in 2012, farms, ranches and other businesses will be required to complete an IRS Form 1099 for all payments, including goods and services, aggregating $600 or more in a calendar year to a single non-employee payee.

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