Bakers pressing for proposal on 1099 filing repeal
WASHINGTON — The Independent Bakers Association is urging members to voice support for a proposal by Senator Mike Johanns of Nebraska to repeal new Form 1099 requirements that are part of the Patient Protection and Affordable Care Act. The proposal by Mr. Johanns will be considered as an amendment to the Food Safety Modernization Act, S. 510. The rule would require all businesses, beginning in 2012, to report payments to and purchases from any business totaling more than $600 in a calendar year, regardless of what the money was used to purchase. Senator Max Baucus of Montana has proposed a Form 1099 repeal that is virtually identical to Senator Johanns’ proposal but lacks an offset to maintain budget neutrality. Senator Johanns’ amendment directs the Office of Management and Budget to identify $39 billion in unspent and unobligated accounts to replace the revenue that might have been generated by the 1099 paperwork mandate. Decrying the Form 1099 requirement as highly burdensome on small businesses, Nick Pyle, president of the Independent Bakers Association, urged bakers to contact their Senators in support of Mr. Johanns’ amendment.