Senate Passes 1099 Repeal Bill

The Senate today voted to repeal the expanded 1099 reporting requirements that were unpopular with many associations and small businesses, sending the bill to the president’s desk for signature. ASAE and its grassroots 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, DC last week.

WASHINGTON—The Senate today voted to repeal the expanded 1099 reporting requirements that were unpopular with many associations and small businesses, sending the bill to the president’s desk for signature. ASAE and its grassroots 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, DC 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 In the 2011 ASAE advocacy survey, 85% of ASAE member CEO’s said the requirement should be completely repealed by Congress.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.

“This 1099 repeal is really a collaborative win for associations, and ASAE thanks the many advocates in our community who signed letters, made calls and visits to their elected officials, and stayed active and vigilant over these past many months to see this issue through to the desired end. Associations were very much united on this issue and together, we got the result we needed,” said Jim Clarke, CAE, ASAE’s senior vice president of public policy.

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.

For more information, visit ThePowerofA.org, ASAE’s advocacy platform.

MEDIA CONTACT: Jakub M. Konysz, 202-626-2831, [email protected]

About ASAE
ASAE is a membership organization of more than 22,000 association executives and industry partners representing more than 11,000 organizations. Its members manage leading trade associations, individual membership societies and voluntary organizations across the United States and in nearly 50 countries around the world. With support of the ASAE Foundation, a separate nonprofit entity, ASAE is the premier source of learning, knowledge and future-oriented research for the association and nonprofit profession, and provides resources, education, ideas and advocacy to enhance the power and performance of the association and nonprofit community. For more information about ASAE, visit www.asaecenter.org.

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