CompTIA Disappointed in Senate Failure to Nix Onerous 1099 Filing Rule

The Senate on Saturday failed to pass amendments that would have repealed the new form 1099 rule, which, beginning in 2012, will require all businesses to file a form 1099 when they pay any business or individual $600 or more for goods and services during one year.  Todd Thibodeaux, President and CEO of CompTIA, issued the following statement.

“CompTIA is disappointed in the Senate’s failure to repeal the form 1099 rule and urges the full Congress and the President to work together to repeal the onerous reporting requirement.  This requirement, which was included in the health care reform legislation, represents an undue burden on small companies.  Increased compliance costs, like the ones included in the new 1099 rule, will short circuit many small businesses at a time when they are looking to reboot.

“The bottom line is that this new requirement could cost small businesses thousands in additional compliance costs.  A $600 printer bought from Costco, for example, could cost $200 more, after you add in the time it will take to file a Form 1099.  Our estimates show that the additional compliance costs that businesses will likely face will be greater than the $17.1 billion in revenue that the Joint Committee on Taxation expects this provision to raise.

“Democrats and Republicans from both Chambers have voiced their opposition to this arduous requirement.  During a press conference last month, President Obama agreed, stating that the rule ‘appears to be too burdensome for small businesses’ and ‘involves too much paperwork.’

“Given the current economic climate, it is important for policy makers to do all they can to help small businesses –the engines of our economy – succeed.  CompTIA calls on Congress and President Obama to support small business by repealing the form 1099 filing requirement.”

About CompTIA
The Computing Technology Industry Association (CompTIA) is a non-profit trade association representing the information technology (IT) industry.  CompTIA represents over 2,500 IT companies. Our members are at the forefront of innovation and provide a critical backbone that supports broader commerce and job creation. These members include major computer hardware manufacturers, software developers, technology distributors and IT specialists that help organizations integrate and use technology products and services.  CompTIA is dedicated to serving its membership by advancing industry innovation and growth through its educational programs, market research, networking events, professional certifications, and public policy advocacy. For more information, visit www.comptia.org or follow CompTIA on Twitter at http://www.Twitter.com/comptia.

CompTIA’s Public Advocacy group focuses on a broad array of issues affecting the IT industry, with particular emphasis on representing the interests of small and mid-sized IT companies and entrepreneurs, supporting an innovation and competitiveness agenda and addressing secure technology issues such as cybersecurity, data breach, privacy and more.  For more information, visit http://www.comptia.org/publicpolicy.aspx

Leave a Comment