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CompTIA Disappointed in Senate Failure to Nix Onerous 1099 Filing Rule, Calls For Immediate, Bipartisan Action To Repeal Provision
12/16/2010 3:09:00 PM
On Dec. 15 the Senate again failed to repeal the new form 1099 reporting requirement, despite the strong concerns of small businesses and bipartisan support for repeal.
On Dec. 15 the Senate again failed to repeal the new form 1099 reporting requirement, despite the strong concerns of small businesses and bipartisan support for repeal. 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 one year. The following statement was issued by Todd Thibodeaux, President and CEO of CompTIA.
“CompTIA is extremely disappointed the Senate has failed to repeal the new form 1099 rule before it adjourns for the holidays. Small businesses, economists, and others have repeatedly called on Congress and the President to address this genuine and pressing concern of small businesses. Just recently, the President has said that the rule ‘appears to be too burdensome for small businesses,’ and we agree.
“The new 1099 rule would result in disastrous and costly compliance costs, dragging many small businesses down under a pile of red tape. This new requirement is a substantial problem for all technology businesses; however, it has a disproportionately negative effect on small businesses.
“Small technology businesses face the added challenge of expending resources to comply with both sides of this new requirement -- both as an IT contractor for clients and as a procurer of technology services and products from other small businesses.
“This provision would require businesses to divert precious time they need away from generating revenue, maintaining jobs and job growth. Given the current economic climate, policy makers must do all that they can to help small businesses – the engines of our economy. CompTIA urges Congress and the President to make repeal of the 1099 provision a top priority of the next legislative session.
“This continuing uncertainty of whether this costly reporting requirement will be implemented, is harmful, especially in this economy. What small businesses sorely need is a clear understanding of future compliance burdens and costs, which Congress has failed to provide.”
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
CompTIA
Washington D.C.
