CompTIA Calls for Swift, Bipartisan Action To Overturn Onerous 1099 Requirement

CompTIA urges both the House and Senate to repeal the new 1099 reporting requirement, which would impose an undue burden on small businesses. Unless this provision is repealed, starting in 2012, all businesses will be required to file a form 1099 when they pay any business or individual $600 or more for goods or services during a year. Accordingly, CompTIA supports passage of the Small Business Paperwork Elimination Act (H.R. 4 in the House and S. 18 in the Senate). The following statement can be attributed to Todd Thibodeaux, President and CEO of CompTIA.

"Last year, small businesses repeatedly called upon Congress and the President to address their concerns regarding this new 1099 requirement, but their voices were ignored. As signs of economic recovery begin to emerge, policy makers must do all that they can to help small businesses, the backbone of our economy, to hire more workers, grow our economy and help maintain U.S. competitiveness. This new reporting requirement would severely affect small businesses.

"CompTIA urges the both the House and Senate to prioritize repeal of the new form 1099 rule and move quickly to right a wrong that will hamper small businesses. The new 1099 reporting requirement would force businesses to divert precious time away from generating revenue, maintaining jobs and growing their companies.

"The 1099 provision hits small IT providers particularly hard. For an IT entrepreneur like Tom Bozeman of Arlington, Texas, the new law would mean filing 50% more 1099s than under the current 1099 reporting requirement, adding $5,000 per year in additional compliance and accounting fees, which is a significant sum for a small company. In fact, as firms like Bozeman's would be forced to use more accountants, file more paper or purchase software to meet the new 1099 requirement, it is likely that overall compliance costs would exceed $17 billion — the figure that the Joint Committee on Taxation estimated it would raise in taxes. Our members are very concerned.

"CompTIA calls upon both Houses of Congress to repeal this measure and send it to the President for a full repeal. Removing this provision will allow small companies to get back to work doing what they do best – running their businesses and being the engine of growth for our 21st century economy."

About CompTIA
The Computing Technology Industry Association (CompTIA) is a non-profit trade association representing the information technology (IT) industry. CompTIA represents over 1,500 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.