Today the U.S. Chamber of Commerce released a letter urging Congress to repeal the new 1099 rules. The letter is countersigned by “organizations and businesses of every size and industry, representing substantial operations in all 50 states, and employing millions of American workers…”
You can read a copy of the letter here.
Yesterday, the Center on Budget and Policy Priorities (“CBPP”) issued a report stating that repeal of the new 1099 rules would cause insurance premiums and the ranks of the uninsured to increase, and eliminate preventive health funding. To my knowledge, the CBPP is the only organization that has come out in favor the Form 1099 requirements.
If you are not familiar with the new rules, effective January 1, 2012, if you are in business and you buy more than $600 in goods from anyone, including any corporation, even if the corporation you are buying from is a Fortune 100 company, you are going to have to issue that corporation a Form 1099 or be subject to draconian penalties.