ASAE issued an announcement supporting the recent vote by the U.S. Senate to repeal expanded reporting requirements that would require all businesses and non-profit organizations to issue 1099 forms to vendors from whom they purchase goods totaling more than $600 per year.
ASAE and its supporters have been pushing strongly for repeal since last summer, and made the issue the top legislative concern for American Associations Day 2011, ASAE’s legislative fly-in held in Washington, D.C., last week.
“The repeal of these onerous 1099 reporting requirements is a great victory for the association community,” said ASAE President and CEO John H. Graham IV, CAE. “Now instead of having to divert resources and staff attention to compliance with this misguided provision, associations and other businesses can stay focused on growing the economy, creating jobs and fulfilling their vital missions. We applaud this action from Capitol Hill and encourage a quick review and signature from President Obama.”
Repeal of the new 1099 reporting requirements was a top priority for the association community. In the 2011 ASAE advocacy survey, 85 percent of ASAE member CEO’s said the requirement should be completely repealed by Congress. Additionally, prior to ASAE’s legislative fly-in last week, ASAE delivered a letter to Congress in February urging repeal that was signed by more than 1,000 associations and nonprofits.
Enacted as part of the landmark Patient Protection and Affordable Care Act passed by Congress in March 2010, the Form 1099 requirements would have forced all businesses and tax-exempt organizations to issue a Form 1099 to vendors from whom they buy goods totaling $600 or more annually. The change, which was scheduled to take effect in 2012, could have resulted in associations having to issue hundreds or even thousands of forms each year, track cumulative payments to vendors, and obtain tax identification information from each vendor.
The bill now goes to the president for his signature. The White House issued a Statement of Administration Policy earlier this year expressing concern but did not issue a veto threat. The president is expected to sign the bill into law.
